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Minimizing risks related to owning and operating rental properties requires that real estate investors understand a wide variety of laws. Brief discussions of a number of categories of laws follow.
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The FCRA was enacted in 1970 to promote accuracy, fairness, and the privacy of personal information assembled by Credit Reporting Agencies (CRAs) and provided to businesses, including credit card companies, banks, employers, landlords, and others.
The Act provides protections and remedies for debtors while allowing debt collection agencies to collect legitimate debts. Some states have more stringent laws.
Improvements or even repairs that are not performed in accordance with building codes or that are done without a required building permit can become serious problems in a number of ways.
Potential problems include increased liability if someone is injured due to unsafe conditions and issues when disclosures of the deficiencies are required at time of sale. Building codes can both determine what rehab you can do and what rehab you must do.
Tasks that might require a permit can vary significantly among jurisdictions. In some jurisdictions one can construct an entire house without worrying about building codes and without a single permit. In others, a permit is required to replace a leaking water heater or even to add an electrical outlet.
Most states license building contractors. Many states set maximum dollar limits (e.g., 0 in CA and 00 in AZ) and limit the types of work for which a license is not required. Some states even limit what an owner can do on his/her own property, particularly on rentals.