If by any chance beginning Windermere investors are considering ownership of a single-family rental property, what largely comes to mind are the operational aspects of the investment: finding tenants, managing property maintenance, and collecting rent. What you may not take into account is that there are bewilderingly more than a few laws and legal matters that relate to buying and leasing rental homes.
Despite the fact that many federal laws will certainly apply to rental properties nationwide, a number of the laws that you will be bound to be aware of are those on the books of your state, county, or even city. Hence, it is important to do your research and have a clear grasp of these laws before you obtain an investment property.
Real Estate Agency and Licensing Law
One of the vital people on your investing team is your real estate agent. The laws that govern the relationship between an agent and their clients differ from state to state. As an investor, it’s primal to understand what your real estate agent can and cannot legally do, from disclosures to acting in a dual agency capacity.
Additionally, understand that real estate agents may or may not be that knowledgeable with property management laws. You should further have a clear idea of the procedures required by Florida for achieving and keeping a real estate license and always check to guarantee that your agent’s license is current and in good standing.
Transfers of Ownership
Another state-specific set of laws you should know well about is those in correlation with voluntary and involuntary ownership transfers. Voluntary transfers of ownership are those that happen when a rental property is secured and purchased. Except, there are too many differences among state laws referring to who will handle the transfer (your real estate agent or an attorney, for example), whether title insurance is required, who pays which closing costs, and who owns the property on the day of closing.
At any rate, you should therefore learn your state laws about involuntary ownership transfers. These transfers usually come about when the heirs of a deceased property owner inherit the property. Ascertaining these laws can help you form a plan and certainly make the process much simpler whether you inherit property or leave your property to someone else.
Limitations on Use
In almost all states, local regulations will order how a property owner may find a use for their property. Zoning ordinances, deed restrictions, historic preservation programs, and environmental review laws can all limit how a property owner may use their land or structures.
As an investor, it’s necessary to take into consideration any local ordinances that may inhibit your plan and ability to renovate or lease the property you care to buy. You should further pay attention if any occupancy laws impacted your strategy to capitalize on the property as a rental.
Fair Housing and Others
There are federal, state, and even a number of local laws intended to protect tenants’ rights and prevent discrimination. So while understanding your federal tenants’ rights laws is important, you should also clearly ascertain whether your state has supplemented those laws with stricter versions of their own. You should particularly check for any rent control policies that may apply, both current and those that are about to be enacted rapidly soon.
Realizing your local Landlord/Tenant laws and habitability standards will help make sure you manage your investment property the proper way. Tenants’ rights laws can cover an overwhelmingly broad range of things, from security requirements to frequency and notification about rent increases.
Taking into account all of the pertinent laws in Florida can be a whole lot of work, this is why it makes a lot more sense for plenty of rental property investors to hire Windermere property management experts instead. At Real Property Management South Orlando, we make sure to master all the ins and outs of state and federal laws and can confidently guarantee that your investment properties are leased and managed in accordance with those laws. Call today at 407-982-2000.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.