Rental property rules and regulations come from three layers of government at once: federal law sets the floor on fair housing, habitability, and disclosures; state law fills in deposit caps, notice periods, and eviction timelines; and local ordinances often add tenant protections on top. Getting any of them wrong can mean fines, lawsuits, or lease terms that courts refuse to enforce. Three things shifted in 2026 that landlords and tenants should know about up front: higher civil penalty ceilings for fair housing violations, a new $2,000 reporting threshold for Form 1099-NEC, and a HUD policy change that narrowed protection for emotional support animals.
Fair Housing and Discrimination
The Fair Housing Act bars refusing to rent, setting different lease terms, or steering applicants because of race, color, religion, sex, national origin, familial status, or disability.1Office of the Law Revision Counsel. 42 USC 3604 – Discrimination in the Sale or Rental of Housing The rules reach every part of the rental relationship: how you advertise, what you ask on an application, the rent you quote, and the policies you enforce once someone moves in. A landlord cannot impose a stricter guest policy on families with children, for example, or demand a bigger deposit from applicants of a particular national origin.2The United States Department of Justice. The Fair Housing Act
Many states and cities add protected classes the federal statute does not cover, including sexual orientation, gender identity, and source of income (such as housing vouchers). When a local law covers a class federal law does not, both laws apply and the broader one controls.
Advertising deserves extra care, because one careless phrase in a listing can bring an enforcement case even if the landlord would have rented to the person anyway. Civil penalties for a first violation now reach $26,262. A landlord with one prior discrimination finding within five years faces up to $65,653, and two or more prior findings within seven years raises the ceiling to $131,308.3eCFR. 24 CFR 180.671 – Assessing Civil Penalties for Fair Housing Act Cases
A few narrow exemptions exist. Owner-occupied buildings with four or fewer units (the “Mrs. Murphy” exemption), single-family homes rented without a broker by an owner who holds no more than three such homes, and housing operated by religious organizations or private clubs for their own members can be partly exempt from certain provisions. The ban on discriminatory advertising applies even where an exemption otherwise would, and state or local laws often close the gaps.
Disability Accommodations and Assistance Animals
The Fair Housing Act requires more than non-discrimination for tenants with disabilities. Landlords must allow reasonable physical modifications such as grab bars, wider doorways, or an access ramp. In private rentals the tenant typically pays, and the landlord can require that the interior be restored at move-out.4Justia Law. 42 USC 3604 – Discrimination in the Sale or Rental of Housing Landlords also have to make reasonable accommodations in their rules, like holding a closer parking spot for a tenant with a mobility impairment at a property that otherwise assigns spots first-come.
HUD changed course on assistance animals in May 2026. It rescinded its longstanding guidance on emotional support animals and now applies the stricter Americans with Disabilities Act standard when evaluating fair housing complaints. Under HUD’s current enforcement approach, an animal must be individually trained to perform specific tasks tied to the tenant’s disability to qualify for a waiver of a no-pets policy. Comfort or companionship alone no longer meets the standard, though HUD will still consider animals other than dogs if they meet the training requirement. The change governs Fair Housing Act complaints HUD processes; it does not override state laws that may continue to protect emotional support animals, so check your state’s rules before denying a request.
Habitability Standards
Most states recognize an implied warranty of habitability. Every residential lease carries an unspoken promise that the unit is safe and livable, whether the written lease says anything about repairs or not, and in most places that duty cannot be waived by contract. At a minimum, a rental generally must provide:
- Structural integrity in the roof, walls, windows, and doors to keep out weather and moisture.
- Hot and cold running water connected to an approved sewage system.
- Safe wiring and reliable electrical power for normal household use.
- Working heat that can hold adequate temperatures in cold weather. Local codes often set a specific minimum, commonly in the 64°F to 68°F range.
- Freedom from significant rodent or insect infestation.
- Prompt remediation of lead paint hazards, mold, or similar health threats.
When a unit falls below these standards, local building inspectors can order repairs, and a court can declare the unit legally uninhabitable. At that point the lease itself may become voidable.
What a Tenant Can Do When Repairs Are Ignored
If a landlord ignores a repair request that affects habitability, most states give the tenant options beyond waiting it out. The two most common are withholding rent until the problem is fixed and “repair and deduct,” where the tenant hires someone to make the repair and subtracts the cost from the next rent payment. Both come with strict procedural rules. Tenants generally have to give written notice, allow a reasonable time to fix the problem, and document each step. Skipping ahead to withholding rent without following your state’s process can lose an eviction case that a tenant should have won.
The law also protects tenants from being punished for speaking up. Nearly every state prohibits retaliation after a tenant files a habitability complaint with a government agency, requests repairs, or takes part in a tenants’ organization. Retaliation can show up as an eviction filing, a rent increase, or a cut in services. Many states presume that negative action within three to six months of a complaint is retaliatory unless the landlord proves otherwise, and a landlord found to have retaliated can owe damages and attorney’s fees and lose the related eviction case.
Security Deposits
Deposit laws cap how much a landlord can collect up front and set the clock for returning it at move-out. Most jurisdictions limit deposits to one or two months’ rent on an unfurnished unit, with a bit more allowed for furnished properties. The money stays the tenant’s legally until it is properly applied to legitimate charges, and many states require landlords to hold deposits in a separate account rather than mix them with operating funds.
After the tenancy ends, the return deadline falls somewhere between 14 and 60 days depending on the state. Along with any balance owed, the landlord must send a written, itemized statement of every deduction. Allowable deductions cover damage beyond normal wear and tear and unpaid rent, not the gradual deterioration that comes from ordinary living. Faded paint, minor floor scuffs, and small nail holes are typical normal wear. Holes punched in walls, pet stains in carpet, and broken fixtures fall on the tenant.
Missing the deadline or failing to itemize is one of the most expensive mistakes a landlord can make. In many states, a landlord who acts in bad faith forfeits the right to keep any part of the deposit, and courts can award the tenant double or triple the original amount as a penalty.
Entry and Privacy
Once a lease is active, the tenant has the right to quiet enjoyment of the property. The landlord cannot walk in whenever they want. Most states require written notice, commonly 24 to 48 hours, before entering for non-emergency reasons such as repairs, inspections, or showings. The notice should give the date, approximate time, and reason for the visit, and entry is usually limited to reasonable daytime hours unless the tenant agrees otherwise.
Emergencies are the one clear exception. An active leak, a gas smell, a fire, or anything else threatening immediate harm lets the landlord enter without advance notice. Even then, the landlord should tell the tenant about the entry as soon as practical.
Required Lease Disclosures
Some disclosures have to appear in the lease, or be delivered alongside it, for the agreement to be fully enforceable. The most universal one is lead-based paint: federal law requires landlords of any residential property built before 1978 to disclose known lead hazards and provide the EPA’s “Protect Your Family From Lead in Your Home” pamphlet.5Office of the Law Revision Counsel. 42 USC 4852d – Disclosure of Information Concerning Lead Upon Transfer of Residential Property6US EPA. Real Estate Disclosures About Potential Lead Hazards The tenant also has to receive any available lead testing reports and sign an acknowledgment of receipt.7US EPA. Lead-Based Paint Disclosure Rule Section 1018 of Title X Noncompliance can bring significant civil penalties per violation plus liability for any health consequences.
Many state and local codes require additional disclosures: flood zone location, recent bed bug history, mold, radon test results (especially for ground-floor or basement units), and whether the property has been the site of certain criminal activity. The lease itself should name every adult occupant, identify the property manager with contact information, give a physical address for legal notices, and spell out which party pays for each utility.
Late fees have to be laid out in writing. Many states cap them, often around 5% of monthly rent, and bar charging a fee until the payment is a set number of days overdue. A late fee that is not in the lease is generally unenforceable.
Rent Increases and Lease Renewals
For month-to-month tenancies, most states require at least 30 days’ written notice before a rent increase. Some require 60 days for larger increases or longer tenancies, and a handful require 90 days or more. During a fixed-term lease the rent is locked for the term and can only be raised if the lease specifically allows it.
A growing number of states and cities have adopted just-cause eviction laws, which prevent a landlord from simply declining to renew without a legitimate reason. At least seven states now have statewide protections, and many cities have their own. Where just-cause rules apply, the landlord generally needs a reason tied to the tenant’s conduct (nonpayment, lease violations, nuisance) or a qualifying no-fault reason (owner move-in, major renovation, removal from the rental market). A landlord who wants to raise rent at renewal typically has to offer a new lease on the proposed terms and can only move to non-renewal if the tenant refuses reasonable terms.
Evictions
Evicting a tenant requires a court order. Self-help, like changing the locks, cutting the utilities, or hauling belongings to the curb without a judgment, is illegal in virtually every state and exposes the landlord to damages, statutory penalties, and the tenant’s attorney’s fees.
The formal process starts with written notice, and the type depends on the reason:
- Pay or quit gives the tenant a short window, typically three to five days, to pay overdue rent or leave.
- Cure or quit gives a similar window to fix a lease violation.
- Unconditional quit is used for severe violations such as illegal activity on the premises, with no chance to cure.
If the tenant neither complies nor moves out, the landlord files a complaint in the local housing or civil court. Both sides get a hearing. If the court rules for the landlord, it issues a judgment for possession. That judgment does not let the landlord personally remove anyone. The landlord obtains a writ of possession from the clerk, a sheriff or marshal posts a final notice giving the tenant a short time to leave, and the officer returns to oversee the physical removal and lock change.
When a tenant leaves belongings behind after an eviction or move-out, most states require the landlord to store the items for a set period and send written notice before treating them as abandoned. The storage window and notice method vary by jurisdiction. Landlords who throw out a former tenant’s possessions right away risk liability for the value of what was discarded, so photos and copies of every notice sent are the best defense.
Military Tenant Protections
Active-duty servicemembers have extra rights under the Servicemembers Civil Relief Act. A tenant who receives orders for a permanent change of station or a deployment of 90 days or more can end a residential lease early by delivering written notice with a copy of the orders. Termination takes effect 30 days after the next rent payment is due following delivery. The landlord cannot charge an early termination fee, and any rent paid in advance beyond the termination date has to be refunded within 30 days. These protections extend to dependents who are also on the lease.
Federal Tax Rules for Landlords
Rental income is taxable and goes on Schedule E, where you can also deduct operating costs like insurance, property taxes, repairs, and property management fees.8Internal Revenue Service. About Publication 527, Residential Rental Property One of the biggest deductions is depreciation. The IRS lets you deduct the building’s cost (not the land) over 27.5 years on a straight-line basis, starting when the property is ready and available for rent rather than when a tenant actually signs.
Starting in 2026, the reporting threshold for Form 1099-NEC rose from $600 to $2,000. If you pay an unincorporated independent contractor (plumber, landscaper, handyman, property manager) $2,000 or more in a tax year, you have to file a 1099-NEC for that payment.9Internal Revenue Service. 2026 Publication 1099 Payments by credit card or payment app do not require a 1099-NEC from you because the processor reports them separately. The threshold starts adjusting for inflation in 2027.
Rental losses are subject to passive activity rules. If you actively participate in managing the property and your adjusted gross income is below the applicable threshold, you can deduct up to $25,000 in rental losses against other income. Above that income level, unused losses carry forward to later years or until you sell the property.