Before you buy an investment property in Fort Myers, it’s important to know what you can and cannot do with it after the purchase. Here are some rental restrictions you should be aware of before you buy an investment property in Fort Myers.
Buying investment real estate is one of the best ways to generate wealth. That said, you don’t want to buy a property and later find out that you are not able to do with it what you want. Buyer’s remorse can kick in quickly when you purchase a property that doesn’t turn out to be what you are expecting. In some cases, you may not be able to rent out the house at all! It’s important to do your research before buying an investment property in Fort Myers. Once your homework has been completed, investing in Fort Myers may be one of the best financial decisions you can make!
Can You Rent It Out Legally?
If you purchased the house using an FHA loan, there are a few restrictions on when you will be able to rent out the property. With an FHA loan, you’ll be required to live in the property yourself, either in one of the rooms of the home or in one of the units if you purchase a multi-family property. This is actually a great strategy many investors use when starting their portfolios. Using an FHA loan you can buy a house of up to 4 units, living in one of those units yourself is a great way to have your tenants pay off your mortgage while having free room and board.
Buying a house within an HOA can also limit your ability to rent out the property. There may be rules and regulations imposed by the association which limits your ability to rent or will set specific requirements your tenants must meet before renting the home out to you.
When Can You Enter The Enter The Property?
You likely know that when you have tenants living in your home, you can’t just barge in as you see fit. You’ll need to give notice ahead of your planned visit along with a valid reason why you need to enter the property. This notice is not just a courtesy but a legal requirement in many jurisdictions to ensure that tenants have a reasonable expectation of privacy in their living space. Valid reasons for entry can include necessary repairs, annual inspections, and other maintenance-related issues that ensure the property remains in good condition. Providing notice and the reason for your visit helps maintain a professional relationship and fosters trust between you and your tenants.
Ensuring your tenants are well-screened and receptive to your needs to enter the home is crucial for a smooth landlord-tenant relationship. By screening tenants thoroughly before they move in, you can select individuals who are likely to be respectful, communicative, and understanding of the occasional need for property access. As a landlord, it is essential to balance your rights with respect for your tenants’ privacy. This means adhering to the notice period required by law, typically 24 to 48 hours, and entering the property only for legitimate reasons. By respecting these boundaries, you demonstrate your professionalism and consideration for your tenants, which can lead to a more harmonious and cooperative living arrangement.
What Should You Know About Fair-Housing?
Before buying any investment property in Fort Myers, you’ll need to be well-versed in all of the fair-housing laws. These laws state you cannot make your house unavailable to anyone because of race, color, religion, sex, handicap, familial status, or national origin. Violating one of these laws can result in severe fines and penalties. The first penalty is in the 10’s of thousands of dollars and with more violations, the dollar amounts go up from there.
How Many People Can Live There?
In every city and state, there are specific laws regarding occupancy that landlords must follow to ensure safety and compliance. These regulations often include local laws that dictate a maximum number of occupants per bedroom, ensuring that living conditions remain safe and habitable. Adhering to these laws is crucial not only for legal compliance but also to maintain the integrity and longevity of the property. By setting and enforcing these occupancy limits, landlords can prevent excessive wear and tear on the property, which is especially important in homes with smaller common areas or older plumbing systems that may not be able to handle the strain of too many residents. These proactive measures help in maintaining the property’s condition and avoiding costly repairs in the long run.
Furthermore, it is essential to communicate these residency limits to potential tenants before they go through the application process. Providing this information upfront can prevent misunderstandings and frustration. Prospective tenants need to know if the property can accommodate their family size to avoid wasting time and resources. Transparency about occupancy limits ensures that applicants have realistic expectations about the space and can make informed decisions. This approach not only fosters good landlord-tenant relationships but also reduces the likelihood of disputes and dissatisfaction. Ultimately, clear communication and adherence to occupancy laws protect both the property and the interests of both parties involved.
What Can’t You Put In The Lease?
When drafting your lease, there are things you will need to include such as the amount of the rent, lease terms, and consequences of doing something to break the lease. That said, there are a number of things you cannot include in the lease such as asking the tenants to be responsible for the repairs or making their security-deposit non-refundable. Of course, if the tenant is responsible for damage to the home, they will be on the hook for the repair bills which are hopefully covered by the security deposit.
When buying an investment property it is best to review the laws for your specific area so you know exactly what you can and can’t do. If you are in an area with an HOA, the rules about renting can become even more strict. If you are thinking about buying an investment property in Fort Myers, not only can we help you find the perfect property, but we can also help to ensure you are aware of all of the rental restrictions imposed on your property.