Lead Paint Safety — Read This Before Investing In An Old House With Rental Units
There are a lot of risks landlords take when investing in an older house that is already split into apartments and occupied by tenants, particularly an older house that was built before 1978 when it became illegal to use lead paint in homes. Here is what you need to know as a landlord who wants to invest in an occupied rental property.
Weigh the Benefits vs the Risks
If you are interested in investing in an older house that already has tenants in it, you may be tempted to renovate the apartment units so you can increase the rent. While this is commonly done for older homes, it's important to not make your investment riskier than it already is by ensuring that you meet the requirements of full disclosure regarding the potential hazards of lead paint.
You are required by law to disclose the renovations within a few weeks of when the renovations began. For this purpose, a renovation is defined as a change to the property that disturbs any painted surfaces. Depending on your local and state laws, you may be required to allow the tenants to get out of their leases if they prefer. Consult with a local real estate and tenant law attorney to learn more.
Whether You Renovate or Not, Obtain a Safety Certificate
Whether you choose to renovate or not, it's important for you to obtain what is called a Landlord Lead Paint Safety Certificate. The difference between whether or not you choose to renovate will simply change the dynamics of the timing of the inspection done by the business that will provide you with the safety certificate. Obviously, you won't have the rental units tested for lead paint until after renovations are completed and the dwellings are deemed safe.
However, if you choose not to renovate, you can have the dwellings tested for lead before you invest in the property and close on the real estate transaction. That way, you can get a better idea as to the amount of lead that the tenants and future tenants are being subjected to, as well as to get an idea of how long of a period of time you may have until renovating the property to remove the lead will be necessary. Landlord Lead Paint Safety Certificates can be issued for different lengths of time depending on the severity of the lead paint and the condition of the dwelling.
For more information about landlord lead paint safety certificates, contact a local service, such as PB Free Ohio.
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