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Utah Laws to Know Before Investing In Rental Real Estate

Landlord-Tenant Law Book on a Desk with a GavelWhen most beginning Fruitland investors consider procuring a single-family rental property, what typically comes to mind are the operational aspects of the investment: finding tenants, managing property maintenance, and collecting rent. What you may not be aware of is that there are definitely also a broad array of laws and legal matters that relate to buying and leasing rental homes.

Whereas a  lot of federal laws will apply to rental properties nationwide, all of the laws that you will need to comprehend and know about are those on the books of your state, county, or even city. Exactly why, it is critical to do your research and attain a solid understanding of these laws before you buy an investment property.

Real Estate Agency and Licensing Law

One of the essential people on your investing team is your real estate agent. The laws that govern the relationship between an agent and their clients differ from state to state. As an investor, it’s relevant to be aware of what your real estate agent can and cannot legally do, from disclosures to acting in a dual agency capacity.

At the same time, be aware that real estate agents may or may not be kept abreast of property management laws. You should likewise have a proper understanding of the procedures required by Utah for taking and keeping a real estate license and see to it to check that your agent’s license is current and in good standing.

Transfers of Ownership

Another state-specific set of laws you should know about is those that relate to voluntary and involuntary ownership transfers. Voluntary transfers of ownership are those that transpire when a rental property is bought. Nevertheless, there are a lot of differences among state laws about who will handle the transfer (your real estate agent or an attorney, for example), whether title insurance is required, who pays which closing costs, and who owns the property on the day of closing.

Having said that, you should also, on top of that, learn your state laws about involuntary ownership transfers. These transfers most commonly happen when the heirs of a deceased property owner inherit the property. Understanding these laws really well can help you carefully prepare and make the process so much lighter and smoother whether you inherit property or leave your property to someone else.

Limitations on Use

In various states, local regulations will take charge of how a property owner may employ their property. Zoning ordinances, deed restrictions, historic preservation programs, and environmental review laws can all limit how a property owner may use or profit from their land or structures.

As an investor, it’s very important indeed to see if any local ordinances may come between your plans and the likelihood to renovate or lease the property you hope to buy. You should also check carefully if any occupancy laws impacted your action plans to operate the property as a rental.

Fair Housing and Others

There are federal, state, and even a bunch of local laws intended to protect tenants’ rights and prevent discrimination. So while carefully considering your federal tenants’ rights laws is relevant, you will be better off also checking whether your state has supplemented those laws with stricter versions of their own. You should further check conscientiously for any rent control policies that may apply, both current and those expected to be enacted at some point.

Really understanding your local Landlord/Tenant laws and habitability standards will help see to it that you manage your investment property the correct way. Tenants’ rights laws can cover a whole lot of various different things, from security requirements to frequency and notification about rent increases.


Ascertaining all of the very important laws in Utah can be a lot of work, and in this regard, it actually makes a whole lot of sense for most rental property investors to hire Fruitland property management experts instead. At Real Property Management Uintah, we are well-versed in all the ins and outs of state and federal laws and can establish and make sure that your investment properties are leased and managed in accordance with those laws. Call today at 801-889-1517.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

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