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Utah Laws to Know Before Investing In Rental Real Estate

Landlord-Tenant Law Book on a Desk with a GavelIn the case when numerous new West Valley City investors think about investing in a single-family rental property, what commonly comes to mind are the operational aspects of the investment: finding tenants, managing property maintenance, and collecting rent. What you may not realize is that there are, in like manner, a startling considerable number of laws and legal matters that relate to buying and leasing rental homes.

Even though a number of federal laws will actually apply on rental properties nationwide, practically all of the laws that you will be required to hear about are those on the books of your state, county, or even city. Consequently, it is necessary to do your research and acquire clear details and understanding of these laws before you obtain ownership of an investment property.

Real Estate Agency and Licensing Law

One important team member 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 imperative to apprehend and understand what your real estate agent can and cannot legally do, from disclosures to acting in a dual agency capacity.

In the same vein, know that real estate agents may or may not be well-versed with property management laws. You should as well have a thorough understanding of the procedures required by Utah for acquiring and keeping a real estate license and double-check to guarantee that your agent’s license is current and in good standing.

Transfers of Ownership

Another state-specific set of laws you should get to know is those addressing voluntary and involuntary ownership transfers. Voluntary transfers of ownership are those that happen when a rental property is acquired. That being said, there are a number of differences among state laws regarding 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.

Nonetheless, you should, over and above that, learn your state laws about involuntary ownership transfers. These transfers characteristically are realized when the heirs of a deceased property owner inherit the property. Realizing these laws can help you set up and make the process lighter whether you inherit property or leave your property to someone else.

Limitations on Use

In some states, local regulations will oversee over how a property owner may utilize their property. Zoning ordinances, deed restrictions, historic preservation programs, and environmental review laws can all limit how a property owner may deal with their land or structures.

As an investor, it’s essential to be well-aware on the subject of any local ordinances that may hinder your ability to renovate or lease the property you wish to buy. You should secondly inquire if any occupancy laws impacted your planned measures to administer the property as a rental.

Fair Housing and Others

There are federal, state, and even plenty of local laws intended to protect tenants’ rights and prevent discrimination. So while learning your federal tenants’ rights laws is imperative, you also need to really understand whether your state has supplemented those laws with stricter versions of their own. You should, in like manner, check thoroughly for any rent control policies that may apply, both current and those thought to be enacted someday.

Assimilating and understanding well your local Landlord/Tenant laws and habitability standards will help secure that you manage your investment property the proper way. Tenants’ rights laws can cover a staggeringly broad range of things, from security requirements to frequency and notification about rent increases.


Finding out all of the important laws in Utah can be a lot of work, accordingly, it holds good for a lot of rental property investors to hire West Valley City property management experts instead. At Real Property Management Wasatch, we ascertain all the ins and outs of state and federal laws and can make certain 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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