Each time new Denham Springs investors weigh the risks when it comes to buying a single-family rental property, what characteristically comes to mind are the operational aspects of the investment: finding tenants, managing property maintenance, and collecting rent. What you may not even think about is that there are similarly an astounding number of laws and legal matters that relate to buying and leasing rental homes.
Notwithstanding that those multiple federal laws will certainly apply to rental properties nationwide, numerous laws that you need to actually know about are those on the books of your state, county, or even city. Therefore, it is integral to do your research and benefit from clear know-how of these laws before you set out to possess an investment property.
Real Estate Agency and Licensing Law
One of the necessary 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 substantial to hear what your real estate agent can and cannot legally do, from disclosures to acting in a dual agency capacity.
In like manner, you may also take note that real estate agents may or may not be skilled in property management laws. So you should, on top of that, have extensive knowledge of the procedures required by Louisiana for acquiring and keeping a real estate license and see to it to check that your agent’s license is current and in good standing.
Transfers of Ownership
Another state-specific set of laws you should be aware of are those closely referring to voluntary and involuntary ownership transfers. Voluntary transfers of ownership are those that unfold when a rental property is being bought. But as a matter of fact, there are a whole lot of differences among state laws on the subject of 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.
Still, you should also make sure to learn your state laws about involuntary ownership transfers. These transfers oftentimes come up when the heirs of a deceased property owner inherit the property. Being informed of these laws can help you draft and devise a plan and make the process simple whether you inherit property or leave your property to someone else.
Limitations on Use
In a large number of states, local regulations will define how a property owner may deal with their property. Zoning ordinances, deed restrictions, historic preservation programs, and environmental review laws can all limit how a property owner may apply their land or structures.
As an investor, it’s critical to distinguish any local ordinances that may tamper with your potential to renovate or lease the property you may decide to buy. You should on top of that determine if any occupancy laws impacted your original plans to benefit from the property as a rental.
Fair Housing and Others
There are federal, state, and even a lot of local laws intended to protect tenants’ rights and prevent discrimination. So while knowing your federal tenants’ rights laws is necessary, you have to check carefully whether your state has supplemented those laws with stricter versions of their own. You should check very carefully as well for any rent control policies that may apply, both current and those soon to be enacted.
Knowing and comprehending your local Landlord/Tenant laws and habitability standards will help totally ensure you manage your investment property in the correct way. Tenants’ rights laws can cover a startlingly broad range of things, from security requirements to frequency and notification about rent increases.
Comprehending all of the pivotal laws in Louisiana can be a lot of work, and due to this, it completely makes perfect sense for some rental property investors to hire Denham Springs property management experts instead. At Real Property Management Baton Rouge, we are aware and knowledgeable of all the ins and outs of state and federal laws and can really make sure that your investment properties are leased and managed in accordance with those laws. Call today at 225-389-6860.
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.