Virginia Landlord Disputes: Three Big Legal Changes

Are you interested in becoming a landlord or are you a landlord trying to stay updated on all the new laws in Virginia? There are several new laws that have been adopted by Virginia recently that you need to be aware of. These new laws may impact the terms of any leases you are currently using. As such, you may want to consider contacting a lawyer to help update your leases.

So what are these new laws, and what dangers to they represent?

Virginia Residential Landlord Tenant Act

Opt Out

Landlords that own less than five (5) investment properties used to be covered by a less strict version of the Virginia Residential Landlord Tenant Act. However, new law in Virginia requires that these landlords specifically opt-out of the provisions of the Virginia Residential Landlord Tenant Act. Failure to include specific opt-out language may result in your property being covered by the stricter rules that govern larger landlords.

This could result in significantly more overhead when it comes to maintaining your properties. Landlords that are covered by the Virginia Residential Landlord Tenant Act have more duties to their tenants. Some of those duties include, but are not limited to, maintaining the property in better working order.

Eviction Waiting Requirements

Virginia has also modified the length of time it takes to get possession of your rental property from a non-paying tenant. Landlords used to be able to request “immediate possession.” By doing so, the court could allow a landlord to immediately take possession of the property for repairs.

The new law limits a landlord’s ability to take immediate possession. The new law requires an automatic ten (10) day waiting period before you can perform a lock-out. It is important to know about this change as it may impact your timeline for re-letting the property. This language may also impact any agreements you have with your prospective tenants.

Foreclosure Dangers

Another recent change to Virginia Landlord/Tenant law is that leases now automatically terminate upon a foreclosure. Therefore, if you own a rental property and are foreclosed upon, your tenant may be subject to a quick eviction within a short period of time. This can have serious economic hardships for the tenant. Therefore, it may be a good idea to seek legal advice on how to put language in your lease to protect yourself from economic harm resulting from a foreclosure.

Why you need a lawyer

If you invest in real estate it is a good idea to have a lawyer review your contracts on an annual basis. Laws are constantly changing, and a seemingly mundane change in the law can have serious impacts on your ability to make a living. Make sure you regularly consult your lawyer on issues related to your properties.

Virginia Real Estate: Types of Mortgages

Have you decided to buy your first home? Are you an investor looking to flip a property? Either way, mortgages are an important aspect of any house purchase. Mortgages come in all shapes and sizes. Mortgages can have different terms, rates, and obligations based upon the type of mortgage you qualify for. Below are some basic types of mortgages. Each of the types of mortgages listed below have several different subtypes of mortgages that are best discussed with your lender.

Conventional Mortgage

This is one of the most common types of mortgages. This mortgage is a private transaction between yourself and a lending institution. There are several different types of lending institutions. One common example of a conventional mortgage is a loan from your local bank.

These types of mortgages can come with a variety of benefits. Because these loans are with private institutions, your lender has a lot more freedom to offer incentives or other benefits. These mortgages are typically accessible for individuals with a good job and good credit.

FHA Loan

These types of loans are backed by the federal government. FHA stands for Federal Housing Administration. This is the governmental body responsible for supporting these types of loans.

The benefit of a FHA loan is that you may qualify for these loans even if your finances or credit are not that good. The downside of an FHA loan is that you are limited in the number of times you can qualify for this type of loan and the rates are highly regulated. The federal government sets strict standards for the amount of downpayment that has to be made and the rates associated with the mortgage.

VA Loan

These loans are only available for certain qualifying individuals. VA stands for Veterans Affairs. These are excellent loans for service members. More highly regulated than FHA loans, these loans are even more accessible than FHA loans and conventional loans.

How to Choose a Mortgage

There are a lot of considerations in deciding which types of mortgage or lending institution is right for you. Some of those considerations are legal in nature. Mortgages can have provisions related to when the lending institution can foreclose, potential increases in payments during the lifespan of the loan, and several other terms that are important to know. If you are considering buying your first home or investing in real estate, consider working with a team to determine what financial arrangements are best for you. Consider a team of a real estate agent, a CPA, and an attorney to maximize your understanding of your potential purchase.