How to Be an Ethical Landlord

Putting your home on the rental market can be a great way to generate income and optimize your taxes while offering a place for someone to live. But more than that, it's also a way to preserve your home if you need to move but could see yourself returning one day. Despite these benefits for homeowners, many worry about becoming the dreaded “L” word. 

Landlords are often accused of being money-hungry monsters that gobble up all available property and push homeownership out of reach for others. But that's not always the case. We argue that making high-quality rental homes available plays a vital and important role in our communities. Not everyone is ready for homeownership, but everyone needs a place to call home. That is why the rental market exists.

How can you be a landlord in an ethical way that makes renting a win-win for homeowners and residents alike? 

1. Ensure your home is safe and comfortable

Your number one responsibility when making your home available on the rental market is to ensure it is habitable. Homeowners have a legal obligation to ensure their rental property:

• Is structurally sound and intact (including floors, stairs, walls, roof)

• All electrical, plumbing, sanitary, heating, ventilation, air-conditioning and elevators are operating safely

• There is sufficient cold and hot water

• No known hazards are posing any danger to tenants (such as lead paint, asbestos, radon)

• Reasonable measures are in place to prevent foreseeable criminal intrusions

• The property is pest-free

Especially if you have previously occupied the home, there may be some things you could overlook. But before you put it on the rental market (or consider making a purchase on an investment property), make sure all the items are addressed.

An ethical landlord will want their residents to feel at home and not have to wait months for repairs to take place. If you rent your home through a property manager, they can generally log maintenance and repairs via an online portal, but that isn't an indication of how long you will need to wait for them to find a contractor to get to you.

If you choose to partner with Belong, we have a strong network of over 10,000 vetted tradespeople that are available via our 24/7 concierge service.

2. Price your rental at a fair market rate 

There’s a lot of discussion around today’s housing crisis. Many cities face affordable housing shortages, and landlords across the country seem to be taking advantage of this by raising rent at a shocking rate. Determining “fair market rate” can be daunting for a first-time landlord, but keep these principles in mind as you get ready to list your home on the rental market:

• Set reasonable expectations. Though you may have seen Reddit threads and investor podcasts claim rental returns 2-3x the property’s mortgage, this isn’t realistic or ethical. 

• Price based on market data. Not only is this fairer to potential renters, but pricing your rental based on real market data will help you rent your home much faster. 

• Accept Section 8 and other housing vouchers. Some new landlords worry about accepting housing vouchers, but these programs level the playing field for residents and help alleviate some of the impacts of our housing crisis in an immediate, tangible way.

Working with a partner like Belong will take the guesswork out of pricing your rental. We leverage thousands of real-time data points to help you price your rental competitively, and we market your rental for you so that qualified residents are easy and fast to find.

3. Create a reasonable, easy-to-understand lease agreement

Leases are binding legal contracts, and as such can be daunting for homeowners and residents alike. Helping your residents understand the terms of their lease is not just a courtesy, it also helps avoid common issues that renters and landlords face. Make sure the following gray areas are explicitly documented and discussed before anyone signs on the dotted line:

• Pet policy: will you allow pets? Which kinds? Will there be a deposit to cover potential pet damage? Will this deposit be refundable? 

• Marijuana policy: will you allow marijuana on your property? What are the potential consequences of violating this policy (losing a security deposit, etc)? 

• Exterior maintenance: who is responsible for lawn maintenance, snow removal, etc?

4. Address resident concerns immediately 

Being a renter can be incredibly frustrating when something needs maintenance and you are unable to fix it yourself. If you own your home and the furnace breaks, you will liaise with the repair person directly, and although still stressful, this can feel easier. When your residents have a maintenance issue, from a broken appliance to a severe leak, it’s your responsibility to communicate clearly and fix it as soon as possible. 

This is where many landlords can get a poor reputation. Common renter complaints revolve around maintenance disputes. This is one reason you may want to consider working with a partner like Belong. Instead of being directly responsible for being available and responsive to residents, Belong’s extensive network of maintenance professionals can be found at your fingertips. This alleviates stress for residents and homeowners alike and ensures your residents will have a good experience while living in your home.

5. Respect resident privacy 

This isn’t just an ethical consideration, in almost all cases, it’s the law. While it can be tempting to swing by and see how your property looks on a whim, homeowners are required to give residents 24 hour notice before entering the occupied property in almost all cases. Aside from the legal requirements, it is important to remember that although you own the property, while it is occupied by a resident, that property is their home. 

Belong helps ensure homes are well taken care of by scheduling regular inspections and check-ins that respect resident privacy and also reassure homeowners. 

Find the right partner (or be prepared for a lot of work)

Self-management of a rental property is a lot of work. There is a lot more to it than simply marketing the home and vetting tenants. To creating legally-binding lease agreements, avoiding discrimination in advertising descriptions and staying on top of all legalities and repair requests, it gets a lot easier with help.

But do the property management companies in your area share your values and align to your vision of being an ethical landlord? If not, it's time to look at an alternative solution, like Belong.

Belong is not a property management company. While we do handle everything to do with rental homes, by taking a human approach and treating both landlords and tenants with respect and care, what we offer is closer to a hospitality experience for the rental market. We select the right tenants who are in for the long-haul, offer both you and your residents access to a concierge service 24/7, and offer fast repair and maintenance work. We also guarantee your rent will always be paid and can even cover your cash-flow by allowing you to split the cost of things like repairs and insurance. You can learn more about our unique services here.

Renting people love

No more landlords or tenants. Belong is making renting magical for homeowners and residents, creating the world's first residential network. We partner with homeowners to achieve financial freedom, but we do it ethically, and without you having to lift a finger.

Visit our homeowner's page to find out more about how our services are helping people to ditch property management in Seattle, San Francisco, San Diego, Los Angeles, Tampa, Orlando, Jacksonville, Miami and many more.