Legal regulation of rental relations and its impact on real estate investment attractiveness in the United States

Abstract

The purpose of this study is to examine the legal regulation of rental relations in the United States and to determine its influence on the investment attractiveness of the real estate market. The study focuses on the institutional features of the American legal system, including the federal structure of regulation, the distribution of powers between federal, state and local authorities, and the role of judicial practice in shaping landlord–tenant relations.

The methodological basis of the study is formed by a combination of general scientific and special legal research methods. The research is based on doctrinal legal analysis, comparative legal analysis and elements of the law and economics approach. The study also involves the analysis of academic literature, judicial doctrines, federal legislative acts and analytical reports concerning housing policy and the functioning of the rental housing market in the United States.

Results. The research demonstrates that legal regulation of rental relations constitutes an important institutional factor influencing the investment attractiveness of real estate. The federal nature of the U.S. legal system leads to substantial differentiation of regulatory regimes among states and municipalities, which creates varying investment conditions across regional markets. Judicial doctrines, particularly the implied warranty of habitability, play a significant role in shaping the balance between landlords’ obligations and tenants’ rights, affecting the operational costs and legal risks associated with property ownership. At the same time, regulatory mechanisms such as rent control, eviction procedures and tenant protection standards influence investors’ behavior and the structural development of the housing market.

Conclusions. The study concludes that the predictability of the legal environment, effective protection of property rights and stability of regulatory policy represent key determinants of investment attractiveness in the rental real estate sector. The interaction between legal regulation and economic conditions forms a complex institutional framework that significantly influences the development and long-term stability of the rental housing market in the United States.