Even novice real estate investors can do very well in the Las Vegas market. If you’re approaching the purchase of a rental property for the first time or finding yourself new to dealing with tenants, there’s definitely a learning curve.
But, you have a lot of support available to you. As Las Vegas property management experts, we’re always providing resources and answering questions when novice investors come to us hoping to learn what to do and what not to do.
While you want to gather all the best information about marketing a rental home, screening tenants, and maintaining your investment, nothing is more important than following the rental laws in Las Vegas.
There are various complexities that come with ensuring you’re legally compliant when you rent out a property here. You’ll have to know security deposit laws, understand what habitability standards look like, and follow all fair housing laws. There are strict procedures around eviction and you need to know the difference between a service animal, a pet, and a companion animal. You need a lease agreement that’s both legally compliant with Las Vegas rental laws and legally enforceable in Las Vegas courts.
It probably sounds confusing.
And it is, even to experienced real estate investors and landlords.
That’s why it’s so important to partner with local property managers who know the laws and can protect you from unnecessary risk and liability.
Let’s take a look at how you can move from novice to expert when it comes to remaining in compliance with all of the rental and property laws in our market.
Fair Housing in Las Vegas Rental Properties
Las Vegas fair housing laws start with the federal Fair Housing Act, but the state and local laws go even further than the national requirements and regulations. While the federal law prohibits discrimination in the provision of housing and housing-related services based on race color, religion, national origin, sex (gender), familial status (presence of children under the age of 18), and disability, Nevada state law also includes protections based on ancestry, sexual orientation, and gender identity or expression.
Fair housing laws apply to you when you’re marketing and showing properties, screening tenants, and executing the lease agreement.
Novice fair housing mistakes include:
- Using language in your listing that could be perceived as discriminatory.
- Not establishing standard rental criteria that’s available and applied to all applicants.
- Screening inconsistently, or holding different applicants to different standards.
Experts, on the other hand, understand that when marketing your property, you want to focus on the details that will be appealing to all prospective tenants. You also want to have strict criteria in place that’s objectively applied to every application. Working with a Las Vegas property manager is also something investment experts do; we have the resources and the technology to ensure no fair housing laws are violated while we find you a tenant.
Nevada’s Implied Warranty of Habitability
In Nevada, the implied warranty of habitability is a legal requirement that obligates landlords to provide and maintain a rental property that meets basic living and safety standards. In Las Vegas, it’s automatically applied to all residential leases, regardless of whether it is specifically mentioned in the lease agreement.
Landlords in Nevada must uphold certain responsibilities to ensure their rental properties are habitable. This includes offering safe and functional utilities. Heating and cooling must be available to tenants, as well as electricity and plumbing. Tenants need a safe water supply and proper sanitation. The building has to be structurally sound, meaning roofs and walls are sturdy and protect residents from weather and external dangers.
You’ll also have to ensure that your rental properties are free from infestations of pests, such as rodents and insects. Regular pest control measures may be necessary to maintain a safe and livable environment. You’ll also need to comply with all health and safety codes. You’ll need to maintain smoke detectors and carbon monoxide detectors. Homes must be free from hazardous materials like asbestos or lead paint.
Landlords are required to perform necessary repairs promptly once they have been informed of an issue. Failure to address repairs can lead to legal action or rent withholding by tenants.
Security Deposits and Las Vegas Properties
Novice real estate investors and landlords are often flummoxed by security deposit protocols. That’s understandable. While some things are clear, the act of returning the deposit can easily lead to disputes and conflict with your departing tenant if you don’t know how to make the right deductions.
Here’s what expert investors know about Nevada security deposit law:
- There’s a limit to what you can collect. Nevada law stipulates that a landlord may charge a maximum security deposit equal to three months’ rent. It’s important to note that this includes any additional deposits such as pet deposits.
- You have to know how to hold them (and return them). Landlords in Las Vegas must keep security deposits in a trust account separate from their personal funds. Upon termination of the tenancy, the landlord has 30 days to return the security deposit to the tenant, minus any lawful deductions. This timeline is crucial—failure to comply can lead to penalties, including the requirement to pay the tenant twice the amount withheld and reasonable attorney fees.
- You can deduct for damage, but not for wear and tear. Landlords can make deductions from a security deposit for unpaid rent, the costs for repairing damage beyond normal wear and tear, and the amount that was spent to clean the unit to return it to the same condition it was rented out (excluding normal wear).
- Landlords must provide an itemized list of deductions along with any remaining deposit funds to the tenant within the prescribed 30-day period.
Disputes are unpleasant, so you want to make sure to document the condition of your property before tenants move in, and then document it after they move out. This will help you prove damage and cleaning needs, if necessary.
Late Fee Restrictions on Nevada Rental Properties
In 2019, Nevada passed AB 308, which was a law that said owners and Nevada property managers cannot charge late fees until at least three days after rent is due on a monthly rental. So, if rent is due on the first of the month and it isn’t paid, the late fee cannot be charged to your tenants until the fourth of the month.
You can only charge up to 5% of the rent as a late fee, and you cannot charge multiple late fees for the same period of time. A novice landlord might try to charge $75 as a late fee and then an additional $10 per day that the rent is late. Expert rental property owners know that they cannot compound their late fees.
Rent Increases on Nevada Rental Properties
Rent control does not exist in Las Vegas nor in Nevada. The state has the Dillon Rule, which prohibits local cities from establishing rent control when the state has not.
When you’re renting out a property for a month or longer, there are new requirements on notice that you’ll need to provide when the rent is going up.
To comply with the aforementioned AB 308, landlords will need to provide at least 60 days of notice before a rental increase goes into effect. Typically, rent is only raised during the lease renewal period, so you’d be working with a timeline, anyway. Expert rental property managers will approach their tenants at least two months before the end of the lease term to determine whether they’ll be renewing the lease or moving out. That’s a great time to begin negotiating any rental increase.
Eviction Laws in Las Vegas
Don’t make a novice mistake when you’re trying to evict a tenant. Here are the worst things you can do:
- Change the locks to evict a tenant because they haven’t paid rent.
- Turn off the utilities because rent is overdue.
- Cancel the lease agreement and instruct tenants to move out without any notice.
All evictions must begin with serving your tenants a notice. The type of notice you will serve depends on your reason for eviction. For nonpayment of rent, for example, you’ll serve a Seven Day Notice to Pay or Quit. Your tenants will have seven days to catch up with the rent, and if they don’t, you can proceed to filing a formal eviction.
Expert landlords in Las Vegas know that an eviction may cost $200 or more from start to finish, depending on the circumstances. Evictions may take anywhere from 10 to 180 days, depending on the circumstances of the case.
When it comes to serving the notice, you may use the Constable’s Office or a licensed process server. We recommend you don’t proceed with an eviction on your own, especially if you’re new to this. Contact a Las Vegas property manager, like the team at New West Property Management.
These are not all the laws you need to know, but it’s a good introduction as you try to move from novice to expert. Let’s talk about all the other laws you need to know.
Please contact us at New West Property Management. Our team expertly manages residential rental homes in Las Vegas and throughout Clark County, including Henderson and North Las Vegas.
