What Ownership Rights Do I Have as a Property Investor?

By: Caroline Hornsby
When investing in a rental property it is important to know what rights you will have.

After all, if your tenants have got rights when they don’t even own the property, then you – yourself – have got a certain amount of power too. More so, as you are its real owner.

Despite this, it is a good idea to have a basic grasp of your ownership rights and to know the terminology in case you ever have to give notice to your tenants. That a way, you will know exactly where you stand.

To help you get started we have listed a few of the terms you will need to know when you come to investing in your first rental property.

The right of possession

All this essentially means is that the property is owned by whomever holds the title i.e. you. Even as an investor, when you go to your bank to get your loan, all you are really doing is doing what other homeowners are doing – you are buying a property.

The only real difference is that all your repayments will be paid for by your tenants. You won’t be paying a penny.

The right of control

As long as you act within the laws, you as the owner have got full power over how your property is used. So turning it for example into a buy-to-let property is within your grasp.

The right of exclusion

This one is important when it comes to evictions. Under this section you have the power to exclude others from using or entering your property.

Now we do recommend that you are careful when it comes to these. As there must be a valid reason why you want to evict them from your property. In other words, they must have legally broken an agreement within your contract that gives you the right to evict them.

Alternatively, you can opt to use a particular type of tenancy agreement that will enable you to give them a short notice period. A notice period they cannot contest.

The right of enjoyment

Here you can enjoy the use of your property in any legal manner. From turning your property into two apartments, or renting the property from yourself – it is possible – under this section, how you choose to use your property investment is totally up to you.

The right of disposition

Now this is the one to remember, as it most applies to you as a property investor.

As the title holder of your property you will have the right to sell, rent or transfer ownership at will. No questions asked.

This is great if you are hoping to transform your home into a rental property instead of trying to sell it. Through this rule you can speedily get yourself back onto the market, simply through rental accommodation.

Now remember, these are only the basics of land ownership. To get a full grasp of your rights, it is best to consult with your solicitor when you invest – especially when you are structuring a contract with your tenants.

But as you can clearly see - even if you are new to property investment, finding a property to become your first piece of rental accommodation is in fact easier than you think.

Caroline Hornsby is a professional copywriter with 8 years experience in the field of property investment. Advising people on the best property investment, she is currently working with Property Mentor on their real estate seminars.