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Landlord Files: 3 Legal Aspects of Real Estate Investment by Laura Jeeves





Landlord Files: 3 Legal Aspects of Real Estate Investment by
Article Posted: 06/12/2025
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Landlord Files: 3 Legal Aspects of Real Estate Investment


 
Real Estate

Real estate investment (to be specific, purchasing a property with the intention of becoming a landlord) might sound like a quick and easy way of getting someone to pay off a mortgage for you and pocketing a tidy profit along the way. The good news is that can definitely be the case – as long as you listen to professional advice along the way.

Employing professional property management is one of the most important things you can do as a landlord. Because, while the rewards can be appealing, the pitfalls for an inexperienced investor/landlord are many. A reputable company will take care of all the aspects involved in managing your real estate investment, including tenant vetting, rent collection, regular maintenance and any urgent repairs. But arguably their most important role is ensuring that you, as a landlord, remain compliant to the law in every way.

When it comes to real estate investment, the law is extensive and nuanced, but a basic knowledge of the following three aspects can be very helpful – while leaving the details to your property manager.

Leases

A lease is a legal agreement between two (or more) parties. A lease between a tenant and a landlord is a legally binding contract that covers a specific period of time. In some cases, for short term rentals it can be periodic, renewing every month. A lease comprises various conditions and terms, including the amount of rent paid, the amount of bond held, schedule of rent increases, and the responsibilities of all parties. Having a correctly worded lease with all the legal aspects covered is vital in case there is any kind of dispute or misunderstanding between the landlord and tenant.

Tenant laws

While ideally your property manager will be well versed and up to date with tenant laws and your obligations as a landlord, having a basic understanding can be valuable for anyone involved in real estate investment. The laws will, of course, vary depending on the state, however in essence they cover things like rental agreements (see above), tenant responsibilities in terms of maintaining the property, landlord obligations regarding the state of the property and essential repairs, notice periods, evictions, pets, modifications (for disabilities), and various other aspects.

Property rights

Again, the legal rights of tenants and landlords can vary from state to state, so it’s important to know where you stand. Basically, though, the key features of tenants’ rights cover issues like the provision of a safe, habitable property, a lease or tenancy agreement, freedom from discrimination, fair notice of inspections, bond return, reasonable time frame for essential repairs to be carried out, and the freedom to live in and enjoy the property in a fair and equitable way.

A reputable property manager will be bound by their professional ethics to ensure that they manage your investment in a compliant way, and that their legal advice is accurate. But having even a basic knowledge of your obligations and responsibilities as a landlord in terms of the legal aspects will keep you ahead of the game and guarantee you can maintain a good relationship with your tenants.

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Danny Torres is from Torres Turn Key, a property management company in Rochester NY with more than ten years’ experience dealing with both domestic and international clients involved in real estate investment. Providing a holistic service for both commercial and residential properties, the company brings together a host of experience and specialist knowledge to build long-term relationships and create maximum value and benefit for their customers.

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