Every time some beginning Dacula investors ponder on buying off a single-family rental property, what often comes to mind are the operational aspects of the investment: finding tenants, managing property maintenance, and collecting rent. What you may not take into consideration is that there are undoubtedly a staggering number of laws and legal matters that relate to buying and leasing rental homes.
Even supposing numerous federal laws will have something to do with rental properties nationwide, almost any of the laws that you will be obligated to comprehend are those on the books of your state, county, or even city. Thus, it is primal to do your research and achieve a clear appreciation of these laws before you purchase an investment property.
Real Estate Agency and Licensing Law
One of the most essential person 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 integral to find out what your real estate agent can and cannot legally do, from disclosures to acting in a dual agency capacity.
But as a matter of fact, know also that real estate agents may or may not be so literate on property management laws. You should likewise take care to have a deep understanding of the procedures required by Georgia for acquiring and keeping a real estate license and double-checking to actually ensure that your agent’s license is current and in good standing.
Transfers of Ownership
Another state-specific set of laws you should comprehend are those highly related to voluntary and involuntary ownership transfers. Voluntary transfers of ownership are those that ensue when a rental property is obtained. But, there are a whole lot of differences among state laws, especially concerning 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.
Despite that, you should take the initiative to learn your state laws about involuntary ownership transfers. These transfers commonly transpire when the heirs of a deceased property owner inherit the property. Understanding these laws well can help you outline a plan and set up the process to be much easier whether you inherit property or leave your property to someone else.
Limitations on Use
In nearly all states, local regulations will regulate how property owners can use their property. Zoning ordinances, deed restrictions, historic preservation programs, and environmental review laws can all limit how a property owner may effectively use their land or structures.
As an investor, it’s imperative to take into account any local ordinances that may inhibit you from renovating or leasing the property you’ve made up your mind to buy. You should likewise verify if any occupancy laws impacted your plans to profit from the property as a rental.
Fair Housing and Others
There are federal, state, and even a few local laws intended to protect tenants’ rights and prevent discrimination. So while apprehending your federal tenants’ rights laws is integral, you want to learn whether your state has supplemented those laws with stricter versions of their own. You should similarly check very carefully for any rent control policies that may apply, both current and those in all likelihood to be enacted very soon.
Comprehending your local Landlord/Tenant laws and habitability standards will help see to it you manage your investment property properly. Tenants’ rights laws can cover a shocking variation of things, from security requirements to frequency and notification about rent increases.
Distinguishing all of the basic laws in Georgia can be a lot of work, because of this it makes a whole lot more sense for most rental property investors to hire Dacula property management experts instead. At Real Property Management Executives Greater Atlanta, we appreciate all the ins and outs of state and federal laws and can always completely ensure that your investment properties are leased and managed in compliance with those laws. Call today at 678-504-8580.
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.