The administration of handling funds for a rental property can be overwhelming when you take into consideration all that is involved, whether you are dealing with your potential renters, contractors or vendors, or with your tenants. Are you aware of the laws in Texas? Are you aware of your tenants’ rights? Are you handing the funds in accordance with the rules and regulations outlined for your specific state? Laws, rules and regulations differ by state. Make sure you are aware and are handling funds to stay compliant with the law.
Handling tenant deposits can be a more complicated subject than you might think. State laws vary when it comes to the amount, deadline for returning after your tenant vacates and the acceptable bank account types used for securing the funds.
The laws governing rent payments vary from state to state as well, from whether or not a notice is needed on a rent increase to the maximum charge permitted for a late fee.
What about laws regarding application fees? Are you aware of the ramifications of how you collect this fee, what happens to this money if the property is no longer available? There may be rules or laws that the potential renter is aware of that could come back to bite you if you are not.
Whether you receive funds physically or electronically, the rules apply.
With electronic rent payment, there are additional benefits and potential problems to consider. Can you legally require your tenants to pay this way? What about late fees? Are there rules that govern how much you can charge? It is crucial that you are informed to avoid potential law suits. Make sure you know the requirements you need to be aware of as an owner of a rental property. Whether you own one property that is being rented out to a friend, or several that you are managing as a rental property business, the rules apply.
Being a meticulous record keeper is critical. An ability to provide a clear audit trail for all funds for each property you own is crucial. If you ever feel like it may be an overwhelming task to manage, you may want to consider getting help with the financial portion of your rental property business. Consider hiring an accountant with real estate experience. Or consider hiring a property management company in your area. Knowing the laws in the state of Texas that govern how funds for a rental property should be handled is key to keeping your business compliant. Don’t risk exposing yourself as a rental property owner to lawsuits by your tenants, vendors, or potential renters if you are not following the rules.
Here at Real Property Management Alamo, we are licensed to protect you https://www.rpmalamo.com/. We know the laws, rules and regulations that go along with collecting rent and other fees as well as deposits. We can keep your financial records. We can keep you compliant with all the handling of your finances from electronic payments and processing regulations and are familiar with the laws that impact your rental property business. Contact us today at [email protected] or 210-787-3876.