Rental Property Management

7 Strange Laws Owners & Renters Should Know

| 4 min. read

No matter where you go, you'll encounter odd laws and regulations when it comes to property. Strange rental and ownership laws have created conflicts around the world and, there are a lot of ways for owners and renters to get burned. Before you buy or rent, make sure you investigate for yourself so you don't find yourself in tricky situations or caught by surprise. Here are a few strange laws about rentals, homes, property management, and more.

#1: Maintenance Restrictions

Where: New York, New Jersey, New Mexico, Hawaii

Passaic, New Jersey, bans house painting on Sunday. In Schenectady, New York, you can't fill nail holes with putty. In Santa Fe, New Mexico, mowing the lawn is against the law. In Hawaii, don't disturb Mother Nature (or anyone else) with a leaf blower when you should be in church. Either these restrictions carry over from lawmakers attempting to make citizens abide by Christian values, or take offense to people maintaining their yards with machinery, this puts homeowners and residents in inconvenient situations when they have to perform maintenance and repairs.

Unintended consequences: Some people give up, letting homes deteriorate.

#2: Foreign Buyers Must Apply to a Government Department

Where: Turkey

Turkish law is very restrictive about foreign nationals buying real estate, and part of the drawn-out process stems from national security worries. The country's Act 2565 requires foreign buyers to apply to the Turkish General Staff, or a department appointed by them, to ensure the property that foreigners are interested in is not located in a military zone, nor too close to a sensitive target.

Foreign buyers are trying to get around the requirement and the six-month wait through notarized agreements with third parties who take ownership while the buyer awaits the military's permission. The problem is that, because they are not official deeds, these notary agreements do not guarantee ownership to the buyer and occupy a legal gray area that can encourage scammers.

Unintended consequences: Turkey is chasing away a lot of foreign investors.

#3: Legal Separation of Buildings from Roads & Land

Where: Poland

UNINTENDED CONSEQUENCES: Accelerating down the road to serfdom

Poland gained a great deal of freedom when Lech Walesa and his Solidarity union motivated the populace to throw off the Communist Party in the 1980s. Unfortunately, some of the nation's laws, as well as a wide range of local and regional regulations, date from the era of state ownership of everything, making it hard for Poles, not to mention foreign buyers, to figure out who owns the property.

In Warsaw, you can own a property, but it doesn't include the ground. That belongs to the city governing council, which can force you to move or even demolish your house. In the Polish countryside, farm owners sharing a common access road all have to agree on upgrades or repairs to any part of it, but they can change their minds at any time, essentially stalling progress in its tracks.

Unintended consequences: Homeownership is risky and other inconveniences make it challenging to maintain normal living spaces.

#4: Preventing "Anti-Social Behavior"

Where: England

In recent years the British people have learned how to play the Anti-Social Behavior Order (ASBO) process to get bothersome neighbors back for incidents or slights, major and minor. In the case of terminally ill Kathleen Edwards, the law was on the side of her bipolar neighbor who sent Kathy death threats and harassed her daily, including parking a hearse in her front yard.

The Town Police Clauses Act of 1847, still in force though mostly ignored, gives police wide latitude in controlling people's actions, whether on private or public property. In addition to banning profane singing, the Act prohibits shaking or beating rugs, cleaning doormats at certain times of the day, and having a bonfire on your lawn.

Unintended consequences: People use regulations to bug their neighbors.

#5: More Intrusive and Detailed Tenant Vetting

Where: Japan

Following World War II, the new Japanese government intervened in the housing market to help struggling workers establish stable residences. The government requires landlords to get its permission to issue a series of warnings to non-paying tenants, leading to eviction only after six months. Property owners have to choose renters carefully.

Because tenants have the weight of the government on their side, landlords do the only thing they can do to protect their interests, namely, reduce the risk as much as possible. Renters in Japan go through a more intrusive and detailed credit and background check than buyers do in the U.S., and foreigners will need help from a well-connected Japanese friend with good English skills.

Unintended consequences: It's challenging for Japanese tenants to find a unit, and is nearly impossible for foreigners.

#6: Restrictions on Inconsequential Things You Can Do in Your Home

Where: Missouri

Missouri has antiquated laws still on the books. Many concerned with what you can and cannot do in your own home, whether you own or rent. For example, if you are under 21 and take out the garbage with even a container (empty or not) of alcohol, you are guilty of illegal possession of alcohol, even if someone else asked you take it out.

It's not much better at the local level. In a number of Missouri towns, it is illegal for four women to rent an apartment together, and some cities still use the state's Brothel Law to prohibit four or more unrelated people from living in the same place, too. If you're fed up in Ballwin, Missouri, go home before you cuss—it's the only spot where you're allowed to do that.

Unintended consequences: Silly laws make people lose respect for legislation.

#7: Severe Restrictions on Evictions and Rent Increases

Where: Portugal

Property rentals in Portugal have been regulated for several hundred years. Many laws and regulations were born of the dramatic political changes the nation experienced in the last 150 years. In 1966, the Portuguese Codigo Civil (Civil Code) brought all rental laws together in a comprehensive manner, including the 1948 law prohibiting rent increases in Lisbon and Oporto, the country's major cities.

The socialist revolution of 1974, and political agitation of the 1980s, resulted in a strongly pro-tenant regime, with drastic restrictions on evictions and rent increases. To return competition to the rental market, and simplify recovery of owner property, the New Urban Lease Act took effect in June 2006. Results are hard to gauge, as various factions continue to fight over the Act in courts, parliament, the media, and even the streets.

Unintended consequences: Favoring tenants has stalled economic recovery.

APM
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