When it comes to the real estate home rental market, regulatory rules and guidelines are constantly changing. With the latest rental property market analysis showing accelerated growth in the annual US rental market size in 2023 (from 0.5% to 1.2%)–and with emerging technologies and economic and societal shifts–rental property rules and regulations are evolving and progressing faster than ever before.
Staying up-to-date on the latest federal and state regulations in the rental property market is not only necessary but essential to remain compliant and profitable in 2024.
The 6 Biggest Requisites in Today’s Rental Property Regulations
From fair housing laws to data protection regulations, every modification introduces new complexities that influence business operations and shape the rental property market.
Below are the six biggest rental property requisites real estate investors must monitor and tips to help navigate evolving regulatory challenges in the residential rental property market:
1. Fair Housing Regulations
TIP: Continuously stay up-to-date on evolving fair housing regulations. Routinely update tenant screening services to align with legal requirements by refining screening criteria, implementing measures to prevent unintentional biases, and enhancing transparency.
2. Affordable Housing Requirements
TIP: Familiarize yourself with long- and short-term rental laws and requirements in a property’s specific jurisdiction and explore partnership opportunities with accredited, affordable housing organizations to ensure continued compliance.
3. Green Building Standards
- Energy-efficient appliances
- Water-saving fixtures
- Eco-certifications like LEED (Leadership in Energy & Environmental Design)
For real estate investors and landlords in the rental property market, adherence to green building standards is not only a legal obligation but a market differentiator–enhancing property value and enticing tenants.
TIP: Research and implement the latest eco-friendly home improvements that attract buyers and align with regulatory requirements. Additionally, work with environmental consultants to conduct comprehensive environmental assessments of properties.
4. Building Codes & Permits
- Rental property fire safety regulations
- Fuse box regulations within a rental property
- Housing heating unit regulations
- Sufficient ventilation requirements
- Rental property window regulations
Building codes and permit requirements vary from one jurisdiction to another. However, obtaining permits and ensuring constant compliance with the most recent building codes are critical to success. It’s important to abide by these requirements so that your cash flow from a rental property doesn’t suddenly stop!
TIP: Work closely with experienced architects, engineers, and contractors who can help navigate building code requirements, facilitate securing permits, ensure compliance, and avoid costly mistakes.
5. Data Protection & Privacy Laws
Multiple state-level data protection laws in the US have impacted and complicated tenant screening. These laws have even extended beyond the screening process, putting the onus on landlords and real estate investors for proper data collection and disposal.
TIP: Implement robust and thorough cybersecurity software and protocol. Institute transparent data practices that emphasize the use of secure and ethical data collection and disposal.
6. Eviction Moratoriums & Tenant Protections
Because the extension or lifting of moratoriums can play a role in tenant payments and behaviors, insight into state and federal moratorium laws and tenant screenings is now more important than ever.
TIP: Stay informed about the latest eviction moratoriums and tenant protection laws. Implement flexible tenant screening protocols to quickly shift with the evolving landscape and ensure you are approving qualified and stable tenants.
In order for savvy real estate investors and landlords to effectively navigate the ebbs and flows of the rental property market and its regulatory requirements, they must:
- Stay up-to-date with evolving rules and regulations.
- Engage and seek advice from local authorities, experienced contractors, and other industry experts.
- Be proactive and committed to compliance.
- Remain agile and reliable throughout real estate development to account for shifting regulatory demands and unforeseen challenges.
