When newbie Wake Forest investors mull over shelling out money for a single-family rental property, what comes to mind are the operational aspects of the investment: finding tenants, managing property maintenance, and collecting rent. What you may not regard is that there are likewise a startlingly large mix of laws and legal matters that relate to buying and leasing rental homes.
Allowing that innumerable federal laws will have a significant impact on rental properties nationwide, most of the laws that you need to take into account are those on the books of your state, county, or even city. Therefore, it is basic to do your research and reap a clear understanding of these laws before you decide to purchase an investment property.
Real Estate Agency and Licensing Law
One of the salient 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 pivotal to be informed and aware of what your real estate agent can and cannot legally do, from disclosures to acting in a dual agency capacity.
Over and above that, understand that real estate agents may or may not be really up to date with property management laws. So you should particularly take care to have a better knowledge of the procedures required by North Carolina for effectively getting and keeping a real estate license and make sure to establish that your agent’s license is current and in good standing.
Transfers of Ownership
Another state-specific set of laws you should grasp well is those regarding voluntary and involuntary ownership transfers. Voluntary transfers of ownership are those that take effect when a rental property is already bought. But take note, there are a few differences among state laws relative 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.
Then again, you should still make sure to learn your state laws about involuntary ownership transfers. These transfers often happen when the heirs of a deceased property owner inherit the property. Taking into account these laws can help you fix up a plan and successfully make the process hassle-free whether you inherit property or leave your property to someone else.
Limitations on Use
In almost any state, local regulations will exercise control over how a property owner may certainly use their property. Zoning ordinances, deed restrictions, historic preservation programs, and environmental review laws can all limit how a property owner may handle their land or structures.
As an investor, it’s really important to learn as regards any local ordinances that may disrupt your chance to renovate or lease the property you plan to buy. You should particularly follow through if any occupancy laws will impact your agenda to make use of the property as a rental.
Fair Housing and Others
There are federal, state, and even quite a few local laws intended to protect tenants’ rights and prevent discrimination. So while discovering your federal tenants’ rights laws is pivotal to your success, you should also clearly check whether your state has supplemented those laws with stricter versions of their own. You should, at the same time, check securely for any rent control policies that may apply, both current and those apt to be enacted immediately.
Discovering your local Landlord/Tenant laws and habitability standards will help to always make certain you manage your investment property the best way you can. Tenants’ rights laws can cover an unanticipated large number of things, from security requirements to frequency and notification about rent increases.
As you can see, knowing all of the critical laws in North Carolina can be a lot of work, therefore it is quite understandable for many rental property investors to just choose to hire Wake Forest property management experts instead. At Real Property Management Raleigh, we certainly know all the ins and outs of state and federal laws and can properly ensure that your investment properties are leased and managed in compliance with those laws. Call today at 919-481-0008.
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.