If you are considering becoming a landlord in Texas be aware that there are many laws on the state, county and local levels that the property owner will need to know about. A prospective landlord might want to check with the municipality to see if they have rental licensing requirements. In Sugarland, Texas you must be register your rental property (either online or by mail), and pay a fee. Upon registration, you will then be required to setup an inspection of the interior and exterior of the dwelling.
In the case of a citation by the City of Sugar Land for code violations concerning maintenance, sanitation, or safety the landlord must remediate these issues immediately. The consequences of not registering can be pretty severe. Landlords can be fined up to $500 a day for failure to obtain a license and water service can be denied. If the landlord does not complete this registration process in a timely manner, then new tenants maybe denied water service until the landlord has paid the fines and application fees. The tenants may be issued a temporary water service permit that is good for 30 days, but it is on the landlord (or his property management representative) to coordinate this matter to insure that the inspections are completed in a timely fashion.
What does this mean for landlords? Renting out a house for residential occupancy in Texas is not something that one should undertake without some legal and professional counsel. Talk to a good real estate attorney, the fire marshal, a real estate agent and your local locksmith to make sure you have all of your bases covered. You have substantial responsibilities as a landlord in Texas. Owning rental property is a great way to build wealth and passive income. Make sure that you are not penny wise and pound foolish.
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