Anytime that you invest in a rental property, you need to have a clear understanding that there are strict local, state and federal regulations that will govern much of what you do. These regulations are in place to protect both landlords and tenants alike. These regulations are a legal matter and must be disclosed to both parties. Failure to make proper notice and disclosure can result in significant legal trouble and be quite expensive to fix.

Some required disclosures do vary among different localities, and it is always wise to do adequate research regarding any regulations for a specific area. However, there are certain regulations that are commonly found in most areas.

1. Lead Paint: Lead disclosure is a federal regulation. You are required to know when the property was built, especially if it was constructed before 1978, when lead paint was commonly used. If there is lead paint on the premises, you are required to provide a specific federally published booklet to your tenants and have them sign a disclosure stating they are aware. The booklet is entitled, “Protect Your Family from Lead in Your Home,” and can be obtained from the Environmental Protection Agency (EPA).

2. Hazardous Materials: Some localities require this notice which essentially is intended to notify tenants regarding various potentially toxic or hazardous materials were used in the construction of the property.

3. Mold: The presence of mold can result in huge liability for the property owner. Be sure to check for the regulations regarding mold notification in your area.

Certain addendums that you provide to your tenants may not be related to anything harmful or potentially hazardous. Many times, addendums are related to specific rules that you have as a landlord, that they need to be notified about.

A common addendum that is used by landlords is a roommate addendum. Many landlords will notify their tenants that each and every roommate that lives in the unit will be held liable for any damage done to the property. This will protect the landlord from having to make repairs when one roommate takes off, leaving the remaining roommates who claim they are not responsible for damages.

Pet addendums are also very common. If, as a landlord, you are planning to permit your tenants to have pets, then it is imperative that you get a full description of the pet that will be living on the property. Deciding to allow a tenant to keep their mature, well-trained dog is far different than discovering the presence of a puppy who is chewing and soiling. Having an addendum in place ahead of time will protect you. Additionally, even landlords who allow pets may have limitations regarding certain sizes or breeds of animals, and try to avoid pets such as aggressive dogs that may pose a biting risk to other tenants or neighbors.

There are a few other considerations as you try to put addendums or notifications in place to protect your property. If you are planning to allow tenants to have pets, you would be wise to require a higher security deposit. It can also be very helpful to get references from previous landlords to determine whether the tenant has proven to be a responsible pet owner in the past. It is also within your rights to require that the tenants show registration papers or vaccination records for their pets. For assistance, contact a Michigan property management company.