Four Lawsuits Income-Producing Homeowners Face

Four Lawsuits Income-Producing Homeowners FaceWhile renting out your home to vacationers is a beneficial, profitable venture, there are certain legal implications associated with this business. As a landlord, there are multiple risk exposures related to home renting that Sevier County Vacation Rental Insurance can mitigate. Let’s take a closer look at the top four most common lawsuits landlords face.

Purchase and Sale Disputes- While the real estate broker is responsible for negotiating the deal, there are still inherent risks associated with purchasing and closing on an investment property intended for renters. Disputes regarding additional construction, building codes, a Certificate of Occupancy, and previous owners not being forthcoming about certain information can lead to revoking of loans and a loss of deposit. What’s more, litigation can ensue to resolve liens on the property, non-ownership standing, tenant matters, etc. However, experts recommend that pursuing proper legal action right away can help mitigate the issues quickly and save money in the long run. Further, if you’re looking to purchase a property it is recommended that you perform a title search, examine the current lease and meet the tenants prior to going forward with the sale.

Rental Disputes- Outlining specifications in writing for your tenant are critical. Included in the contract should be a clause that indicates the additional costs in the event that the tenants overstay their lease, security deposit holdings, and General Obligations Law expectations so as to reduce your risk as a landlord. Further, a component discussing attorney’s fees and costs in the event of an eviction should be discussed, as well.

Foreclosure- If the tenant fails to pay the rent, the landlord should contact the lender immediately and negotiate a forbearance request in order to avoid foreclosure on the home. According to Dan’s Papers, this agreement will provide a time period in which the monthly installments will be excused or discounted as a showing of good faith to keep the mortgage from entering default. If this request is not granted, the landlord faces potential legal action.

Housing Discrimination- According to The Supreme Court, if the landlord is found guilty of discriminating, either directly or indirectly, against anyone based on race, creed, color, sex, gender, disability, religion, familial status, national origin, marital status, sexual orientation, age, or alienage, the applicant has the right to take legal action the landlord. The Supreme Court stressed the importance of upholding this law in order to “counteract unconscious prejudices and disguised animus that escape easy classification as disparate treatment.”

At Barnes Insurance Agency, we are experts in providing vacation rental coverages to protect the homeowner against the broad scope of risks they could face. Our property and liability coverage lines provide peace of mind while renters use your home. For more information on our products, contact our knowledgeable specialists today at (866) 733-5424.

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