When investing in a new property, it’s important to consider the state laws that may affect how you conduct business within that real estate market. Knowing relevant state laws is a vital aspect of being a landlord and can keep you out of trouble with both your tenants and the courts. Below is some information about the law that would be helpful to know when investing in real estate in Louisiana.
Evictions
Evicting a tenant can be legally complicated, and for good reason. You want to make sure that the person you’re evicting does in fact need to be evicted, since forcing someone out of their home is a severe consequence reserved only for severe behavior. In Louisiana, there are a few different reasons you might file for eviction, and there is a separate eviction notice procedure required for each one.
If the tenant hasn’t fulfilled an obligation that was agreed on in the lease, you should write a notice of violation of lease, providing the tenant five days to quit. This means that the tenant now has five days to move out before the landlord can begin the evictions process with the court. Examples of lease violations could be modifying the space in a way that isn’t allowed or having pets in a property that disallows them.
You can also evict someone who hasn’t paid rent. After issuing a rent demand notice, you must follow Louisiana eviction laws and give your tenant five days to move out before filing for eviction.
Similarly, if your tenant is conducting illegal activity in your property, you should send them an unconditional notice to quit, giving them five days to vacate the premises.
Rent and Fees
Louisiana landlord tenant laws specify certain guidelines for collecting rent and other fees from your tenants.
If you do not have a lease agreement, your tenant is expected to pay rent at the beginning of each month. If you do have a lease agreement and there is another date listed and agreed upon in that document, then your tenant will pay on that day.
Application fees, rent increases, late fees, and grace periods are not regulated by Louisiana state law, so feel free to create your own rules regarding these issues.
If your tenant pays rent via check and that check bounces, you can charge a fee of either $25 or 5% of the check. The same goes for if your tenant pays rent with a card that does not have sufficient funds to complete the transaction.
Something to note about Louisiana rent laws is the “repair and deduct” rule. If the landlord refuses to make a necessary repair on their property within 14 days after the tenant has notified them of the issue, the tenant can arrange for a repair themselves then deduct that cost from rent. Otherwise, they can request immediate reimbursement for the repair from their landlord. However, the cost of the repair must be deemed reasonable, or the tenant’s request may not be upheld in court.
Security Deposits
Keeping your tenant’s security deposits safe should be one of your chief concerns as a landlord. Sometimes, state laws have strict rules regarding how and where you keep these deposits, but Louisiana is relatively lax on this issue and gives landlords the discretion to do as they feel is best.
There is no limit on security deposit amounts, and landlords are not required to pay interest on security deposits nor are they required to keep them in a separate bank account. They must, however, return the deposit within a month of the tenant moving out of their property, and can only withhold funds as “reasonably necessary to remedy a default of the tenant or to remedy unreasonable wear” to the unit. If they do withhold anything from the deposit, they must give the tenant an itemized list of all deductions and what they were for.
Conclusion
Continue to do your own research on Louisiana state law to be fully read up on everything that may affect you as a landlord in this state. When in doubt, hire an attorney to double-check any changes you may make to your lease agreements or when evicting a tenant. It’s always better to be safe than sorry when it comes to the law.
