Landlord tips

Why It's Vital For Landlords to Follow the Rules of Rental Management

By TenantCloud Team February 24, 2025

There are approximately 20 million properties in the USA, with roughly 70% being residential. However, no matter whether the rental units in question are commercial or otherwise, the same set of rental management rules needs to be followed. A surprising number of landlords unknowingly bend or break these rules, assuming they can handle things ‘their own way’.

While this kind of approach might work for a spell in the rental real estate world, there will come a time when it doesn’t and when that happens, you could find yourself facing lawsuits or property damage from disgruntled tenants - both of which cost your property management company time and money.

When you follow the rules we’re about to cover in detail, along with utilizing other valuable owner resources, the likely result is good tenant relations, profitability and an improved reputation. So, let’s dive in and explore why cutting corners is something you, as a property owner, should avoid.

What Are The Basic Rules Of Rental Management?

Many people looking at rental management from the outside, assume that it’s an easy job that involves simply owning a building and collecting rent. The reality is that effective property management requires you to operate a well-structured business that operates within the boundaries of the law. In order to do that, you need to have a firm grasp of the basics.

As such, you’ll need to master the following…

Landlord-Tenant Laws

As you might expect, one of the most important aspects you need to be conversant with is landlord-tenant law. The laws governing rental property vary from state to state, but some federal regulations apply across the board, to all landlords. For instance, legislation like the Fair Housing Act prohibits discrimination based on race, religion, disability or sexual orientation.

In addition to this, each state also has its own set of laws relating to rent control, eviction processes and security deposits. For example, some states have limits on how much landlords can charge for a security deposit while others have specific eviction notice rules.

Lease Agreements & Rental Terms

The lease agreement represents the foundation of any landlord-tenant relationship, ensuring that both you and your qualified tenant are clear on the terms and responsibilities. You see, without a clear, legally binding lease in place, you can quickly run into trouble if there’s ever a dispute over rent, landlord responsibilities and more.

The lease agreement represents the foundation of any landlord-tenant relationship

A strong lease will typically outline key terms, such as those often addressed in tenant FAQs:

Rent amount, due date, and late payment policies
Security deposit amount and conditions for its return
Maintenance responsibilities for both landlords and tenants
Pet policies, occupancy limits, and noise restrictions
Grounds for lease termination and eviction procedures

It’s imperative to have a well-drafted lease, as it not only protects you from legal disputes but also sets clear expectations for your tenants. When you do, and an issue arises, you can refer back to it to ensure that both parties remain accountable.

Property Maintenance & Safety Obligations

As we just touched upon, your lease agreement will state the obligations you have to your tenants. Part of this responsibility is to keep the property in good condition so that it’s habitable and safe. In order to meet safety standards, you must ensure the following:

Essential utilities (water, heating, electricity) need to function properly.
Structural issues such as roof leaks, mold, and faulty wiring must be addressed in a timely manner.
Emergency repairs that affect tenant safety should be dealt with promptly.

Due to the importance of these matters, it's best practice for landlords to routinely inspect their rental properties to check for maintenance issues that need to be dealt with. Being proactive in this way (in conjunction with responding promptly to any tenant property maintenance request) helps you avoid costly repairs further down the road and also serves to improve tenant satisfaction.

Rent Collection & Deposits

Another regular duty for tenant management professionals is the collection of rent. Of course, your business relies upon you receiving payment on time, but many landlords struggle to avoid disputes in this area. The key is to have clear rent policies, which can then be enforced should an issue arise.

A well-formed rent/deposit policy will usually include:

A definition of accepted payment methods (online transfers, checks, direct deposit).
Established due dates, grace periods, and late fees in the lease agreement.
Using automated reminders to reduce missed payments.

Security deposits are another area where landlords must tread carefully, as many states have strict rules on how security deposits are handled, including where they must be stored and when they must be returned. Mishandling a deposit (such as failing to return it within the legal time frame) can result in legal penalties.

Pro Tip: Successful landlords don’t just react to issues…they anticipate them. That’s why building a contingency fund for unexpected repairs, vacancies, or legal expenses is wise.

How To Enforce Rules In Rental Property Management

Establishing these rules for your rental property can only be effective if you enforce them, meaning that consistent application is essential. A wide range of issues such as late rent payment or unauthorized occupants can be avoided by decisive rule enforcement. Let’s take a closer look at what makes it one of the most challenging parts of tenant management.

The Importance of Setting Expectations Early

The first step in enforcing the terms of the lease is ensuring that any prospective tenants understand the rules fully from day one. One of the most common causes of lease violations is misunderstanding, but when you clearly lay them out to your renters before they move in, they’ll be under no illusion of what’s expected of them. A great way to cover this is to provide any potential tenants with a handbook that details everything in black and white.

Enforcing Rules Fairly & Consistently

A common mistake that landlords make when it comes to lease terms is failing to enforce the rules consistently - particularly if you’re managing multiple properties. For instance, if you were to be lenient to one tenant, but strict with another, it can lead to resentment. In fact, you could find yourself having to deal with a discrimination lawsuit.

Fair enforcement ensures all tenants are treated equally and helps maintain professional relationships. It also strengthens the authority you have as a landlord. Conversely, if tenants realize that rules aren’t always strictly enforced, they may continue to break them, thinking that there will be no consequence.

However, when you always take a structured tenant management approach (such as issuing written warnings for minor infractions and escalating penalties for repeated offenses), you’ll ensure that your tenants take the rules of their lease seriously.

Dealing with Lease Violations & Penalties

Even when you’re clear with your communication and fair in enforcing the rules, some tenants will still break the rules. When this happens, you should follow the same structured path to ensure you protect yourself. This is how it should ideally go…

Step #1 - Issue a Warning: Firstly, you should provide a polite but firm written notice reminding the tenant of the rule they violated and the consequences they’ll incur if they carry on.
Step #2 - Apply Fines or Penalties: If step #1 doesn’t have the desired effect and the behavior continues, your next step could be to impose fines (if the state you’re in allows it).
Step #3 - Lease Termination: If these violations continue or you find that there are serious rule breaches occurring, you’re within your rights to terminate the lease. In these cases, it’s of the utmost importance that you document all infractions.
Step #4 - Eviction (a Last Resort): While eviction is sometimes necessary, it should always be seen as a last resort in rental property management. It’s a costly process and time-consuming, as well as being heavily regulated, meaning that alternative solutions - such as mediation, payment plans or lease renegotiation - should be considered first.

Pro Tip: Successful rentals don’t just happen by chance, and they involve more than simply enforcing the rules. It’s about running a smooth, profitable operation. Learn more in our guide on how to manage a rental property.

What Are The Challenges Of Rental Property Management?

Despite property managers most often having the best intentions, they can sometimes find themselves facing challenges that make complying with landlord tenant law tricky. In this section, we examine some of the biggest hurdles you’ll encounter when trying to follow the rules.

Staying Abreast of Changing Rental Laws

State and national rental laws pertaining to rental property management are not immutable or static. Instead, they frequently change at all levels, and ignorance of updates is not a defense that will stand up in housing court. As such, it’s crucial to stay up to date with all city, state and federal law changes and resources like the National Low Income Housing Coalition's State and Local Tenant Protections Database can be very useful in this regard.

Handling Disputes Over Lease Interpretations

As we covered earlier, a well-drafted lease is a non-negotiable document that should be provided to every tenant. However, they can be misinterpreted, which can lead to conflict over aspects like obligations in respect of maintenance issues and policy enforcement.

On the one hand, tenants may claim an unclear clause works against them, while on the other, landlords may struggle to enforce a term that wasn’t explicitly detailed. By ensuring your lease agreements are precise and legally reviewed, you can prevent these arguments before they arise.

Navigating the Complexities of the Eviction Process

No matter how blatantly a tenant violates their lease, eviction isn’t always as straightforward as it should be. There are specific notice periods and set procedures that must be followed in tenant management and if you were to make an error - be it unintentional or otherwise - it can result in delays or having your eviction lawsuit thrown out. That’s why an in-depth knowledge of the eviction laws in your state is imperative.

Pro Tip: Rental laws and lease disputes can get complicated fast, whether talking about residential or vacation rentals! Having a local real estate attorney or landlord association as a go-to resource can save you from costly legal missteps. A quick consultation is often far cheaper than dealing with a lawsuit.

TenantCloud - Helping to Simplify Life for Landlords Every Day

There’s no getting around the fact that tenant management can be a challenge. There’s a lot you need to know and even small mistakes can cost you time and money. However, when you’re organized, and in full command of all the facts relating to your rights and obligations, you’re that much better placed to roll with the punches and keep your rental business running smoothly and profitably.

Successful property managers are those who make use of all the tools and resources available to them, with one of the most effective being TenantCloud. Our platform gives you a wide range of features like automatic rent collection, maintenance tracking and tenant screening (great for ensuring you get a quality tenant), all easily accessible through your unique owner login, freeing you up to focus on other, more important tasks.

So, if you’d like to know more about our stress-free property management service, take a look around our website. Here you’ll discover what makes our rental property management software so popular. Alternatively, to chat with a member of our team about your needs, call 1-737-300-9331 today.