If you are a landlord in Utah, it is always in your best interest to research both federal and state laws that could potentially affect your rental business. Knowing the law is the best way of keeping yourself, your tenants, and your properties out of trouble. Researching Utah landlord tenant rights should be a central part of your operation.
This article will take you through some of the most important things that you should know about the law for landlords in Utah.
Rent and Fees
Rent control is banned in Utah, meaning that there can be no legal limit placed on the amount landlords can charge their tenants for rent. Rental application fees are similarly unregulated, and there is no state law that requires application fees to be refundable.
Late fees, on the other hand, are regulated. The legal limit on late fees in Utah is the greater amount of either $75 or 10% of the monthly rent cost. Given that the median monthly rent price in Utah is $2,000, a charge of 10% is likely to be greater. An average rent late fee in the state is only charged once, since late fees that accrue daily do not hold up in Utah courts.
Fair Housing Protections
Utah follows the guidelines of the federal Fair Housing Act. First enacted in 1968, this law bans any form of discrimination by landlords or real estate agents based on race, color, religion, gender, national origin, familial status, and disability. State law expands on Utah rental rights, also banning discrimination based on sexual orientation, gender identity, and source of income. This is especially important to keep in mind as you consider applicants during the tenant screening process.
During the tenant screening process in Utah, you can run a criminal background check and consider the findings. However, it is always advisable to follow the guidelines of the U.S. Department of Housing and Urban Development (HUD) and avoid blanket policies for denying applicants based solely on the existence of a criminal record.
Security Deposits
There is no legal limit to how much landlords should charge their tenants for a security deposit. Generally, the amount is equal to about one or two months’ rent, but the exact amount is at your discretion.
When the lease terminates, you can withhold money from the security deposit for unpaid rent or bills, damage that surpasses reasonable wear and tear, or any other unfulfilled costs and fees originally outlined in the rental agreement.
Evictions
Failure to pay rent is grounds for eviction. However, eviction laws in Utah require that you first issue a three-day rent demand notice. If the tenant submits their payment during that time period, you cannot file for eviction on those grounds.
It is very important to distinguish between a rent demand notice and a grace period. Though Utah does not require that you give your tenants a grace period for rent, if you choose to provide one, it cannot overlap with the three days required by the rent demand notice. For instance, if you give your tenants a three-day grace period, a tenant should have a minimum of six days after the rent collection date to submit a rent payment before you can legally file for eviction.
For other lease violations such as illegal activity on the property, there is no law that requires you to provide the tenant time to “cure” or remedy the violation before you file for eviction. However, you should always notify a tenant if you are planning to begin the eviction process so that they can prepare for the hearing or inform you of special circumstances. For instance, if the tenant is the victim and not the perpetrator of crime (including in cases of domestic violence, stalking, sexual assault, burglary, or dating violence), they may be protected from eviction or permitted to terminate their lease without penalty. Victims of crime can also require you to install new locks on the property.
Conclusion
Researching the property management laws in your state can be hard work, but it is undoubtedly a necessary step in protecting your investments. Hopefully this article will help you make informed and compliant decisions that will ensure the sustainability of your rental business going forward.
