Legal Aspects of Property Management
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Property Management and the Law
Every state, including South Carolina, has laws governing property rentals and the landlord/tenant relationship. It’s easy for property owners to run afoul of these laws without meaning to, but ignorance of the law is not a valid defense when such matters end up in court. Consider the extent of your own legal knowledge, and decide whether it’s enough to keep you out of trouble. If not, you probably need to engage a property management firm with the required legal expertise, such as Palmetto State Properties.
Fair Housing Laws
Property owners would like every unit to be occupied by ideal tenants, and tenant screening is routine. Under the federal Fair Housing Act, certain protected classes are recognized and must not be discriminated against in selecting tenants. South Carolina’s Fair Housing Law recognizes the same protected classes: race, color, religion, sex, national origin, physical or mental handicaps, or familial status. Violating federal or state fair housing laws can result in substantial fines—as much as $16,000 for a first violation of federal law.
Security Deposits
South Carolina does not impose a maximum dollar amount on the size of a tenant’s security deposit. And landlords are not required to pay interest on security deposits when they are held. Still, disputes sometimes arise over the return of security deposits when a tenant vacates an apartment.
Landlords must return the security deposit via mail, minus any legitimate deductions, within 30 days. However, the security deposit does not need to be received during this time, simply sent. Landlords can deduct money from a security deposit to cover unpaid rent, damages beyond normal wear and tear, and certain other costs resulting from a tenant’s breach of the lease agreement. A tenant who wrongfully withholds some or all of a tenant’s security deposit can be sued for three times the amount taken unfairly, plus deducted legal fees.
Habitability
In South Carolina, Landlords are required to provide and maintain essential services, which are defined as water, heat and electricity. Repairs to these must be completed in 14 days–other repairs must be initiated, but not necessarily completed, within 14 days. For example, if a dishwasher is part of the lease and either needs repairs or replacement, the property owner would need to initiate the process (ie. dispatch to vendor, order parts, etc.) within 14 days, but the repair/replacement might take place after 14 days. Similar laws exist across the rest of the US.
Renters are entitled to all of these because of the potential impact on their health and safety. Once a tenant notifies the landlord in writing about the need for repair, the landlord must take care of the problem within 14 days if it is essential. If the matter is not resolved by then, the tenant can terminate the rental agreement or go to court to get an order for repairs or compensation.
Notice of Entry
There are a number of reasons why a landlord may need to enter a rented unit, for example, for routine inspections or maintenance. Unless, in the event of an emergency–such as water leaking from the unit into another apartment or shared space or indications of fire–the tenant must be notified in advance. Failing to provide advance notification is an infringement on the tenant’s privacy rights.
Non-Retaliation
Any action that can be construed as retaliation against a tenant who has taken a protected action against a landlord, such as reporting the landlord for a safety violation, is illegal. Such retaliatory actions include refusing to renew the tenant’s lease, raising the rent above market value, or filing to evict the tenant.
Evictions
There are many conditions under which a landlord can evict a tenant:
- – Nonpayment of rent after the landlord has issued a 5-Day Notice to Pay
- – Violation of lease terms that are not addressed by the tenant after the landlord has issued a 14-Day Notice to Comply
- – No lease or end of lease–if the tenant remains on the property after the rental term has ended and the landlord has issued either a 7-Day Notice to Quit (for week-to-week rentals) or a 30-Day Notice to Quit (for month-to-month rentals)
- – Evidence of illegal acts committed on the premises (allows landlords to pursue immediate conviction)
It’s important for landlords to understand when eviction is allowed and the procedures that must be followed.
Rent Increases
There is no rent control in South Carolina at either the state or local level. Therefore, there are no restrictions on the amount or frequency of rent increases as long as rent increases are not imposed:
- – During the lease term, unless permitted by the lease agreement
- – As discrimination against a protected class
- – In retaliation against a tenant
Final Thoughts On Legal Aspects of Property Management
Again, unless you have the time, inclination, and legal expertise to handle such matters on your own, you would be well advised to hire a property manager, such as Palmetto State Properties, that does. Mishandling issues like the ones highlighted in this article can cost you more than you would have paid an expert to deal with them.
Get in touch today to find out how we can help.
