Being a landlord requires more than just collecting rent and fixing running toilets. You also need to be firmly grounded in how you navigate the complexity of laws that govern your business. One wrong move – even out of ignorance – can land you in court.
Staying legally compliant is non-negotiable, especially in areas with strict, city-specific laws, such as Los Angeles. The good news is that most landlord lawsuits can be prevented if you understand and play by the rules.
Just cause evictions make things complicated
In many states and cities, landlords can no longer unilaterally decide to terminate a rental agreement and evict a tenant without a valid reason. Just cause eviction laws require that landlords have a legally recognized reason to terminate a tenancy. The rules vary by state and city, but in general, landlords subject to these laws can only evict a tenant for the following reasons:
· At-fault causes like nonpayment of rent, repeated late payments, lease violations that were never corrected after being given notice, property damage, and illegal activity.
· No-fault causes like the owner moving into the unit, major renovations that require vacancy, removing the unit from the rental market entirely, safety issues, government orders, or having a family member move into the unit.
In some cases, just-cause evictions come with obligations, such as paying for relocation assistance, longer notice periods, and providing documentation to prove the reason is legitimate. This is where most landlords get burned. If they don’t know any better, landlords end up violating the law, and their tenants usually win in court.
Before giving a tenant notice to vacate, make sure you’ve discussed the situation with your attorney to ensure you’re on the right side of the law.
Notice requirements are absolutes
Most landlords don’t get in trouble because they were wrong, but because they didn’t follow proper procedures for giving notice. Courts don’t typically care about your intentions when you fail to follow the law.
Following the law for notices requires using the correct type of notice, including the mandatory legal language, delivering the notice appropriately, and adhering to the minimum timeframes. A notice served improperly or worded incorrectly can invalidate even a valid eviction case, forcing you to start the entire process over from the beginning.
Security deposits are serious
Security deposits are lawsuit magnets because they’re often handled illegally. Most states require landlords to return a deposit within a strict timeline, accompanied by an itemized statement that explains the deductions. In some cases, receipts and estimates for repairs may also be required. Sometimes, it takes a certain cost threshold to require receipts and itemizations, but landlords cannot simply deduct money from a deposit for whatever they want.
In some cases, landlords can’t charge for painting the walls between tenants and can’t charge a tenant for new carpet if they’ve been a tenant for a certain number of years – even if the carpet has been destroyed.
Fair housing laws are non-negotiable
Fair housing violations can be particularly severe, and this is where many landlords often fall short. Common mistakes include applying screening standards inconsistently, making exceptions for some tenants but not others, requesting a security deposit for a service animal, using advertising language that excludes protected classes, and making casual comments that are misinterpreted as discrimination.
Although the federal Fair Housing Act applies nationwide, and individual states have their own fair housing laws, these rules don’t apply to all landlords. Some exemptions include a single-family home rented without the use of a broker or agent when the landlord doesn’t own more than three homes, and dwellings with four or fewer units if the owner lives in one of the units.
Habitability laws aren’t just applicable to run-down properties
What makes a property uninhabitable can range from major issues, such as a dangerous electrical system and the absence of heat or hot water, to smaller problems, like the lack of a refrigerator and a broken toilet. In California, the law now requires landlords to provide a working stove and refrigerator in all rental units, effective January 1, 2026.
When a landlord fails to make or delays repairs, tenants can file a lawsuit. Depending on the state and city, they may also be allowed to withhold rent, report the landlord to housing authorities, or make repairs and deduct the cost from the rent.
Staying legal requires a system
To avoid lawsuits, it is essential to stay informed, consult with your attorney frequently, and document all relevant information. Staying legal requires having a solid system and a consistent approach rather than making gut decisions and taking shortcuts.
Landlord compliance isn’t a one-time thing. Laws constantly change and enforcement gets stronger. What was legal five years ago might be a liability today. The landlords who avoid court are the ones who are prepared and treat compliance as just another part of doing business.
