Law plays an enormous role in the rental real estate business. Since a majority of the business is made up of negotiating contracts and exchanging money, laws are what keep the entire industry flowing in harmony. Although some specific rules drastically vary from state to state (and even city to city), there are many larger rental real estate law topics that are universal everywhere. Below we take a deep dive into these main components of rental real estate law.
Landlord-Tenant Law Definition
Landlord-Tenant Law is the field of law that governs the rights and duties of landlords and tenants, where the relationship between the two is outlined via legal contracts and enforced by laws of the local government.
Agreements, notices, and letters are important tools of the trade for rental real estate professionals. From buying and selling, to managing rental properties, the entire landlord and tenant relationship is bound by what is put in writing. Since most Landlords are not savvy Lawyers, there are thankfully many prewritten forms available as templates for property owners and managers to use without the need to draft one from scratch. Technologies such as digital signatures also allow for more efficient and even remote agreements to be executed.
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Since rental real estate is treated as a business, legal ownership can take many different forms. There are many different types of ownership to choose from: Corporation, Trust, LLC, Partnership, REIT, and more. Choosing the right form of property ownership is extremely important for several reasons such as liability protection, controlling tax liabilities, and staying on top of administrative requirements.
Things in business unfortunately don’t always go as planned. The most common type of unfortunate occurrence in the rental real estate business is when a tenant stops paying rent or severely violates a lease agreement that requires them to be removed from the property. Similar cases may also include a tenant who defaults on a lease agreement and then abandons the unit before the term is over. Thankfully, there are laws and procedures that property owners can take to correct these issues.
Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice. As such, all information, content, and materials available on this site are for general informational purposes only.