Purchasing rental properties can make a great investment for you and your family. A new monthly income stream and the acquisition of assets that can be sold at a later time for profit or passed down to your children sounds like a good idea.
Overall, it may sound like a solid investment, but are you ready to become a landlord?
The Arizona Residential Landlord and Tenant Act outlines the legal obligations and liabilities of both landlord and tenant.
Let us take a closer look at some of the more significant takeaways outlined in the ARTLA.
- Security deposits: A landlord shall not demand or receive a security deposit that is more than one-and-one-half months’ rent. Any non-refundable fees or deposits being charged must have their purpose explained in writing. Any that is not declared non-refundable is refundable.
- Maintain fit premises: Comply with the requirements of applicable building codes materially affecting health and safety. Make all repairs and do whatever is necessary to put and keep premises in a fit and habitable condition. Keep all common areas in a clean and safe condition. Supply running water and reasonable amounts of hot water at all times, reasonable heat and reasonable air-conditioning. Maintain in good and safe working order and condition all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances, including elevators.
- Notice of foreclosure, effect on lease, damages: If a property is in foreclosure before a new rental agreement is made, the landlord must disclose this information before the rental agreement is signed. If the landlord receives a notice of a trustee’s sale or a notice of foreclosure, the landlord must notify the tenant within five business days of receiving the first notice.
These are only a small sample of what the ARLTA dictates. Make sure you read the entire document before considering purchasing a rental property.
When you are ready to invest in rental properties, you should always seek the advice of someone who is experienced in the real estate market and the legal nuisances that go along with it.