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Texas Laws to Know Before Investing In Rental Real Estate

Landlord-Tenant Law Book on a Desk with a GavelAs most beginning Magnolia investors think about getting a single-family rental property, what most often comes to mind are the operational aspects of the investment: finding tenants, managing property maintenance, and collecting rent. What you may not know at all is that there is also actually an astonishingly large number of laws and legal matters that relate to buying and leasing rental homes.

Granting that a good deal of federal laws will have a significant impact on rental properties nationwide, several of the laws that you have to be familiar with are those on the books of your state, county, or even city. That is why it is pertinent to do your research and get a solid grip of these laws before you get an investment property.

Real Estate Agency and Licensing Law

One of the principal 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 basic to take in and understand what your real estate agent can and cannot legally do, from disclosures to acting in a dual agency capacity.

On top of everything else, know for sure that real estate agents may or may not be well-trained in property management laws. You should, in particular, get a clear picture of the procedures required by Mississippi for successfully obtaining and keeping a real estate license and look to always make sure that your agent’s license is current and in good standing.

Transfers of Ownership

Another state-specific set of laws you should really get a clear understanding of is those focused on voluntary and involuntary ownership transfers. Voluntary transfers of ownership are those that turn out when a rental property is purchased. Simultaneously, there are some form of differences among state laws toward 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.

But certainly, you should also make an effort to learn your state laws about involuntary ownership transfers. These transfers typically occur when the heirs of a deceased property owner inherit the property. Taking into consideration these laws can help you develop a plan and make the whole process manageable whether you inherit property or leave your property to someone else.

Limitations on Use

In a number of states, local regulations will steer how a property owner may put their property to use. Zoning ordinances, deed restrictions, historic preservation programs, and environmental review laws can all limit how a property owner may utilize their land or structures.

As an investor, it’s important to ascertain with respect to any local ordinances that may oppose and interfere with your desire to renovate or lease the property you prefer to buy. You should, in particular, track if any occupancy laws may impact your possible plan to take advantage of the property as a rental.

Fair Housing and Others

There are federal, state, and even particular local laws intended to protect tenants’ rights and prevent discrimination. So while finding out your federal tenants’ rights laws is definitely helpful, you also need to find out whether your state has supplemented those laws with stricter versions of their own. You should as well check diligently for any rent control policies that may apply, both current and those quite possibly to be enacted in no time.

Finding out your local Landlord/Tenant laws and habitability standards will help really make sure you manage your investment property the right way. Tenants’ rights laws can cover an unforeseen bulk of things, from security requirements to frequency and notification about rent increases.


Solidly knowing all of the imperative laws in Mississippi can be a lot of work, that’s certainly why it is fair enough for various rental property investors to hire Magnolia property management experts instead. At Real Property Management Republic, we take into account all the ins and outs of state and federal laws and can guarantee that your investment properties are leased and managed in accordance with those laws. Call today at 281-362-5001.

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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