Many people in the Lancaster area may own an extra home in the area. Others may even rent space in their own residence to make some extra money.
While they might not think of it this way, any Pennsylvania landlord is also a small business owner. This is true even if they are not keeping separate accounts and see their rental as just a side gig to make money.
The bigger and more involved a family’s investment portfolio gets, the more and more likely it is that the business owner will need to formally organize and take other legal steps.
These legal steps might include deciding which type of structure to use when organizing a business and then taking the necessary steps to do so.
There are also important legal questions a landlord with several properties might face as they go forward with operations. For example, if they need to hire employees, they will need to understand their legal rights and responsibilities.
Even someone who wants to own one investment property may need legal help
Even a resident in Eastern Pennsylvania who wants to purchase their first rental property may need legal help in several respects:
- Even with one property, it may be a good idea to form an LLC to organize the business operation.
- Once a landlord has identified a good property, there will be legalities surrounding the purchase of the home. These legalities can include securing appropriate financing and insurance.
- It is always a good idea to be selective when picking tenants. A landlord is going to want someone who will pay the rent on time and take care of the place. However, there are laws about what landlords can and cannot do to choose tenants.
- A landlord will need a clear and thorough lease agreement that Pennsylvania courts will be willing to enforce. The lease should include detailed rules about what happens if the tenant violates the lease.
Would-be landlords in the area should make sure they are prepared legally to assume the responsibility of what hopefully will be a profitable and rewarding business for them.