Renting Out or Buying a Second Home? Shepard Law Can Help

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Are you interested in finding a place for you and your family to live for part of the year? Are you looking to generate a new stream of income by creating an investment property? How can you keep yourself in the clear legally and financially while navigating these options?

The best way to buy a second home is to do it with a reliable legal partner who understands the ins and outs of this exciting portfolio opportunity — one who is able to walk you through each step and help you make important decisions about your property goals along the way. In this article, we’ll explore the ways that the Shepard Law team supports those buying or renting out a second home by keeping them legally in the clear throughout the process. 

The Risks & Rewards of Second Homes

There are plenty of reasons to consider buying a second home: it could provide a place for your family to relax and enjoy quality time together, help you generate a new income stream, grant you access to higher tax benefits, and even give you a head start on your retirement. But as wonderful as these could be, it’s important to understand the full picture of your responsibilities as a dual homeowner. 

Besides initial purchase costs, buying a second home means securing a second mortgage payment and insurance plan, handling upkeep for both properties, paying additional HOA fees, and more added responsibilities. If you decide to rent out one property, you must be prepared to navigate federal and state landlord/tenant laws, comply with local licensing requirements, and create a lease that protects your rights and complies with state regulations. A misunderstanding of these points could lead to serious legal consequences. 

Smoothing Out the Legalities   

With all these considerations top of mind, what does your path forward look like as someone learning how to buy a second home — or even rent out a property for the first time? With Shepard Law, you’ll have robust legal support and advice to guide you through the process from start to finish. 

Our services for second-home buyers and new landlords include: 

  • Purchase Partner: First and foremost, Shepard Law is ready to help you with all the legal transactions involved in the purchase of your second home. All submissions on your end — and communications with our staff if you have questions or need deadline reminders — will happen through our online client portal. An attorney will draft all the necessary documents, including title insurance and closing disclosures, and work to transfer funds as needed.  

  • Guided Decision Making: Many clients come into our office with the intention of buying a second home and renting out the first. If this is your goal, Shepard Law will act as your trusted advisor and help you understand both the benefits and legal ramifications of rental homes. With our team behind you, you’ll learn how to register this property and build out your portfolio — all while staying within legal bounds as you flip your home into a rental. 

  • Landlord Status: Finally, we’ll prepare the documents that you’ll need to be a landlord. As you’ll now be a business owner in addition to a homeowner, it’ll be in your best interest to set up an LLC and transition the second deed from your name to the LLC. Shepard Law will walk you through this process and put you on the fast, but financially and legally sound, track to accepting tenants. 

Sticking With One Home? We Have You Covered   

Of course, not every homeowner’s goal is to tackle the responsibilities that come with owning and managing two homes, let alone renting one out to tenants. It’s very possible that throughout the process of buying a second home and learning more about what that entails, you may decide that becoming a dual homeowner or a landlord is not the right choice for you. 

The final decision is always yours to make, and Shepard Law has your back regardless of the direction you choose to take your property ownership. 

A Community of Support to Streamline Your Legal Processes 

Whether your adult child is embarking on the exciting journey of buying their first home or you need guidance through the probate process after a loved one’s passing, nobody should have to feel alone while navigating new territory. Having a community of support walking alongside you is one factor that will make a world of difference as you experience life’s changes and milestones. 

Shepard Law may work behind the scenes on your behalf for the legal processes involved in your life, but nothing about our services is secretive or disconnected from you and your family. Each real estate transaction, estate planning, or probate process is completed with you at the center, and you’ll be welcomed into our growing community each and every time you step through our doors. 

Contact Shepard Law for more information on how we can assist you in securing your second home correctly and with minimal stress. In our next article, we’ll turn our attention toward homeowners in a life stage where they are looking to downsize, and discuss the ways that Shepard Law can help.