Texas Property Code Title 8 Landlord and Tenant Chapter 92 Residential Tenancies
Investing in Texas real estate can be a goldmine, but it’s not without its landmines. The Texas Property Code is a complex web that can trip up even the most seasoned investors. Here’s a rundown of the biggest pitfalls and how to sidestep them:
1. Landlord-Tenant Law Missteps
Navigating landlord-tenant laws is like walking a tightrope. The Texas Property Code clarifies lease agreements, security deposits, and tenant rights. One wrong step, and you could find yourself in a legal quagmire. Always ensure your lease agreements are airtight and compliant.
2. Security Deposit Snafus
Handling security deposits isn’t just about collecting and returning money. The Texas Property Code has precise rules on storage, return timelines, and permissible deductions. Mismanagement here can lead to costly legal battles. Keep meticulous records and follow the rules to the letter. Ensure you comprehensively document the property's condition before tenants occupy it to establish the actual condition before possession is relinquished. If you do not document the condition and the tenant makes a dispute following the security deposit itemization, you will need to prove the damage was not pre-existing. The same applies to the tenant when you mandate the tenant complete a move-in condition report so they can conduct their due diligence with defects found to be disclosed and documented. If the tenant fails to complete and submit the move-in condition form, then it will be challenging for them to make a dispute. It’s legally required they be afforded this opportunity within a specific window to complete and submit to the property management company or landlord.
3. Maintenance Mishaps
Property maintenance isn’t just good practice; it’s a legal requirement. The Texas Property Code mandates that essential services like plumbing, heating, and electricity must be functional. Neglecting maintenance can lead to tenant complaints and potential lawsuits. For example, this can become more critical in the extreme seasons in Texas, such as the summer. If the temperatures exceed 100 degrees, the landlord must expedite the repair or relocate the tenants within a 72-hour period, as this can become a hazardous situation to the tenant and a liability to the property owner. Regular inspections and prompt repairs are your best defense. Ensuring your tenants are complying with the lease requirements and mitigating liability for the property owner, ensuring they are not running a business from the rental home.
4. Record-Keeping Ruts
Good record-keeping is the backbone of property management. The Texas Property Code requires detailed documentation of transactions, communications, and maintenance. Poor record-keeping can leave you vulnerable in disputes. Invest in a robust property management system to keep everything organized. Or better yet, employ an experienced local property manager to handle the many facets of keeping you legally protected and compliant to reduce the property owner's liability.
5. Local Ordinance Oversights
State laws are just the beginning. Local ordinances can add another layer of complexity. Ignoring these can result in fines and legal headaches. Stay informed about local regulations and ensure your properties comply with state and local laws.
6. Eviction Errors
Evictions are a minefield. The Texas Property Code outlines strict eviction procedures, including notice requirements and legal processes. Missteps can delay evictions and increase costs. Familiarize yourself with the eviction process and consider legal counsel to navigate tricky situations.
7. Fair Housing Fumbles
Fair housing laws are integral to the Texas Property Code. Discrimination based on race, color, religion, sex, national origin, disability, or familial status is prohibited. Violations can lead to severe penalties and tarnish your reputation. Ensure your practices are inclusive and compliant with fair housing laws.
Conclusion
Investing in Texas real estate is rewarding but requires a keen understanding of the Texas Property Code and local ordinances. Navigating the many laws without knowledge or experience can greatly increase your liability risk. By avoiding a few of the pain points mentioned above as common pitfalls and staying compliant, you can protect your investments and enjoy a smoother, more profitable journey.
