Rental Property & Lead Paint

[Ben D.]

Hello!

As a result of a previous post where I asked about a HELOC against a rental property (thanks again!), I am now in the market to acquire my next investment property. We've been looking for about a week now and have found a number of good prospects. However, a fair amount of these houses are older (pre 1978 construction) and therefore have the potential for lead paint issues. From what I can tell, anytime a landlord rents out a house built pre 1978, an EPA lead disclosure form is required. In addition to the disclosure, there could be actual lead paint which could indeed be dangerous if there is remodeling going on and paint dust is in the air.

If I rule out pre-1978 properties I lose a huge pool of potentials. Not to mention that alot of older houses like that have considerble charm and character.

I'd love to get some opinions and insight from other investors on the subject of lead paint. Have you rented out older properties? Was the disclosure an obstacle with potential tenants? Any serious safety concerns?

(I'm in Texas BTW, but I think the lead paint laws are basically nationwide.)

Thanks again for any input.

[Peter Giardini]

Following the EPA guidelines are the best approach in most areas. Regrettably Maryland is not one of those areas.

Almost every rental renovation is now being certified as lead free which requires pre and post renovation testing.

One bit of knowledge that has emerged through all of the lead testing (with the special spectrograph) is that lead paint will most likely show up on the walls of the kitchens and baths, all of the trim, some doors, stair stringer (the part exposed inside the house) stair spindals and banisters.

Also, lead paint has been outlawed for many years and I am told it use in paint was stopped at least as late as 1961. So... unless you own properties that were prior to 1961 the chances of a property have extensive lead paint dimishes with each past 1961.

Pete