Mandatory Disclosures for Landlords
Before signing a lease with a new tenant, landlords are subject to mandatory disclosure—some federal, some state, some local. Because health and safety concers and requirements across the country change constantly, it’s best to check your local laws to make sure you are in compliance with local statutes.
The following disclosures apply to rental property owners no matter where they are:
Lead-based paint
This applies only to properties built before 1978, when lead in paint was banned. Older rental housing may contain paint that was manufactured before then. Lead cannot be detected by looking at the pint; a special test is the only way to verify it. Lead is a serious health hazard, especially to children.
Since lead-based paint is not easy to remove, it is best in most cases to leave it in place; sanding or scraping it can release lead dust. The paint is not hazardous to health until it cracks, peels, or turns to chalk with age.
Because of its danger, the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 requires rental housing owners or their property managers to notify tenants that the property may have lead-based paint. And, owners must disclose any known presence of lead-based paint and provide tenants with an Environmental Protection Agency (EPA) brochure, available online.
The law applies only to properties built before 1978, and exempts housing for the elderly, short-term (100 days or fewer) rentals, studio units, and housing that has been inspected and certified lead-free.
Keep a copy of the disclosure, signed by the tenant, for three years from the date of occupancy. You only need to disclose once, even if the tenant renews his or her lease.
Asbestos
Asbestos insulation, used in buildings until the 1970s, is another serious health hazard. Asbestos particles can cause cancer when released into the air. If a property contains asbestos insulation, or a landlord plans to renovate a property that does, tenants must receive a disclosure. In most cases, specialty firms are hired to deal with asbestos removal.
Megan’s Law
Nearly every state has a version of Megan’s Law, which requires convicted sex offenders to register with local law enforcement. A database of offenders’ whereabouts is then available to the public. Under the federal law, each state can decide how to use and distribute the database information.
Accuracy and upkeep of the database can vary from state to state, as do requirements. Some states require rental property owners to provide a disclosure statement to tenants advising of the Megan's Law database.
Landlords can always refer prospective tenants to local law enforcement if they are interested in searching for sex offenders. Proper tenant screening is one way for landlords to provide a basic protection for all of their tenants, and their property, too. Criminal background and sex offender status on each tenant applicant is essential.