In the United States, laws vary from state to state. If you are not careful, the house you rent may involve legal problems. Today we will talk about what kind of houses are not allowed to be rented out in the U.S., and renting them out would be illegal.
Basement
Basements are one of the most common types of housing that have legal problems. For example, in New York, the city has a high population density and basement rents are relatively low, so many people who are just starting out choose to rent a basement.
There are two types of basements in New York:
One is a basement that is 50% above ground, called a semi-basement, and the other is a basement that is all below ground, also called a full basement.
According to New York law, the roof height of a rented basement must not be less than 7 feet. Second, the basement must have a full living structure. If the basement is mostly below grade or has very small windows, then it is probably illegal to rent.
If your home looks uncertain, be sure to consult with a professional familiar with local laws before deciding whether to rent it out.
Attic or warehouse conversion houses
As many of these houses are located in industrial areas, although the interior may have been converted to residential standards, they can easily be involved in legal issues as they are not located in residential areas, especially as warehouse conversions can be a fire hazard.
If your property is of this type and you want to rent it out to make money, then you need to set aside a remodeling permit at the time of the initial remodeling to ensure that the house is well equipped with water, electricity and other facilities related to living.
As a landlord, if you fail to provide them, you may be complained by the tenant at any time.
Subletting a house
In a separate house, if a part of the structure has its own separate door, its own separate bathroom and kitchen, it is easy to encounter legal problems if this part of the structure is rented separately.
Generally, most of these houses are renovated. If subletting, the landlord needs to show a renovation permit from the government department to prove that the renovation of the house is within the scope of the government's permission and is legal.
Without a government permit, renting such a house can pose a great risk compared to the country.
Old Apartments
If your property is an apartment, the whole building shares a single gas and electricity meter. In order to save money, you can advertise that "utilities are all-inclusive". This kind of rental advertisement attracts the attention of tenants, especially the low-income group.
However, old apartments with identical gas and electricity meters throughout the building are gradually becoming non-compliant with government regulations on renting. If the property you want to invest in happens to be in this situation, it is recommended that you and your broker consult in detail with the local policy on renting out the property to avoid spending too much on unplanned renovations that could affect the return on your investment.
Not having enough windows and security exits
If your home meets the rules for subletting, also check that the bedrooms in the rental property have adequate windows. Some older apartments have separate bedrooms with no windows, which is also an illegal rental home. If the bedroom has a patio, it is also not considered windowless.
In addition, adequate security exits are necessary. Many apartments in the U.S. have fire escapes outside the bay windows, and newer buildings are even equipped with dedicated fire elevators. These are necessary safety exits, the lack of which may leave legal hazards.
So, when you buy a US property with the intention of renting it out to make money, you also need to carefully check the above parts so that your house does not meet the requirements to rent out and affect your investment planning.
