When, typically, most beginning Calvert County investors take on buying a single-family rental property, what conventionally comes to mind are the operational aspects of the investment: finding tenants, managing property maintenance, and collecting rent. What you may not be aware of is that there are also an unbelievably large assortment of laws and legal matters that relate to buying and leasing rental homes.
While many federal laws will affect rental properties nationwide, most of the laws that you are required to follow are those on the books of your state, county, or even city. On that account, it is beneficial to do your research and certainly get a clear sense and comprehension of these laws before you acquire an investment property.
Real Estate Agency and Licensing Law
One of the crucial 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 pertinent to grasp what your real estate agent can and cannot legally do, from disclosures to acting in a dual agency capacity.
On top of that, reckon that real estate agents may or may not be proficient in property management laws. You should then especially do your best to have a solid knowledge of the procedures required by Maryland for getting and keeping a real estate license and ascertain 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 drawn into voluntary and involuntary ownership transfers. Voluntary transfers of ownership are those that come into existence when a rental property is purchased. Although, there are certainly a few differences among state laws in terms 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.
But despite that fact, you should as well learn your state laws about involuntary ownership transfers. These transfers normally happen when the heirs of a deceased property owner inherit the property. Considering these laws can help you think out and make the process worry-free whether you inherit property or leave your property to someone else.
Limitations on Use
In most states, local regulations dictate how property owners can use their land. Zoning ordinances, deed restrictions, historic preservation programs, and environmental review laws can all limit how property owners operate their land or structures.
As an investor, it is important to be aware of any local ordinances that could affect your ability to renovate or lease the property you wish to purchase. You should especially investigate whether any occupancy laws impact your plans to use the property as a rental.
Fair Housing and Others
There are federal, state, and even a handful of local laws intended to protect tenants’ rights and prevent discrimination. So while knowing your federal tenants’ rights laws is pertinent, you should, at the same time, take into account whether your state has supplemented those laws with stricter versions of their own. You should as well check very carefully for any rent control policies that may apply, both current and those most likely to be enacted without delay.
Considering your local Landlord/Tenant laws and habitability standards will help ensure that you always manage your investment property in a suitable and correct way. Tenants’ rights laws can cover an unexpected number of things, from security requirements to frequency and notification about rent increases.
Understanding all of Maryland’s landlord-tenant laws can be a lot of work, so it is entirely reasonable for countless rental property investors to hire Calvert County property management experts instead. At Real Property Management Gold, we consider all the ins and outs of state and federal laws and can warrant that your investment properties are leased and managed according to those laws.
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.
