Plural for Real Estate Companies

What are real estate policy issues faced by companies in the sector? Between taxes, urban development and more, Plural is a helpful tool for real estate companies looking to track public policy. Learn more today!

Real estate is one of the most highly invested assets. Despite this, the U.S. is facing many housing crises throughout the country. Real estate companies must be aware of legislative decisions made in their jurisdictions. Tracking legislation is an essential step in making educated assessments of their actions within the market and for their businesses. 

Plural allows real estate companies to track legislation together. Plural offers a user-friendly search engine, features that make understanding policy easy, and a supportive team that can answer your questions. 

In this blog, we’ll discuss the various areas of legislation that impact the real estate market. We’ll also discuss how Plural helps real estate companies maximize their policy impact.

Real Estate Policy Issues

Various areas of legislation impact the real estate market. This includes zoning laws, environmental compliance, and taxation, among others. Policy issues can impact real estate companies’ regulatory compliance, market dynamics, strategic planning, risk management, and corporate responsibility. Learn more below.

Issues Affecting Regulatory Compliance

Zoning Laws

For real estate companies, zoning laws are fundamental in shaping property development. They designate specific land uses, influencing what can be built and where. For example, a zoning law reclassifying a suburban residential area to commercial use can drastically alter development prospects, enabling the construction of shopping centers or office buildings. This shift can create lucrative opportunities for real estate companies. However, it also poses challenges in navigating new market dynamics.

There are many arising challenges in zoning laws. Increasingly popular in recent years, inclusive zoning refers to a range of policies and practices that mandate or provide incentives for the inclusion of affordable housing units in new developments. Inclusive zoning encourages mixed income neighborhoods and increases the supply of affordable housing.

Building Codes and Safety Regulations

Adhering to building codes and safety regulations is equally critical. These codes ensure that structures meet safety and health standards. They protect occupants and enhance building longevity. Non-compliance can have consequences, including hefty fines, legal disputes, and forced closures. Owners might face remediation costs and litigation if a building fails a safety inspection due to outdated fire prevention systems.

Environmental Regulations

Environmental regulations are increasingly necessary for real estate development. These laws mandate sustainable practices, such as energy-efficient design and pollution control. For example, a real estate company developing a property in a coastal area might need to implement erosion control measures and preserve natural habitats to meet regulatory standards. Failure to comply can result in project delays, increased costs, and potential legal action.

Policy Issues With Financial Implications

Tax Legislation

Changes in tax legislation can have a profound impact on the profitability of real estate investments. This includes changes to property taxes, capital gains taxes, and others. An increase in property taxes can significantly raise the cost of holding and maintaining properties. Conversely, decreasing capital gains taxes can make real estate investments more attractive by enhancing after-tax returns.

Tax incentives can also play a pivotal role in real estate investment decisions. Consider a scenario where a government introduces tax breaks for developing affordable housing. Such incentives can lead real estate companies to prioritize these projects, not only for the financial benefits but also for the positive community impact. By leveraging these tax incentives, companies can improve their financial outcomes while contributing to the common good.

Tax legislation is notoriously difficult to understand. Real estate companies must act fast to gain an advantage. Plural’s AI-powered tools, including bill summarization, help users quickly understand legislation.

Government Funding and Subsidies

Various forms of government funding and subsidies are available for real estate projects. These financial opportunities can reduce project costs and enhance profitability. For example, a real estate company that secures a government grant for green building initiatives can lower its development expenses and increase its market appeal. 

By tracking and utilizing these financial opportunities, real estate companies can:

• Optimize their investment strategies
• Maximize returns
• Ensure long-term financial stability

Staying informed about changes in tax legislation and available subsidies allows companies to take full advantage of beneficial programs.

Issues Affecting Market Dynamics

Understanding market dynamics is essential for real estate companies, particularly rent control and tenant protection laws.

Rent Control Laws

Rent control laws have required notices and start dates which landowners should be readily aware of. These laws aim to protect tenants and promote market stability. They can also influence decisions on property investments and upgrades. Tenant protection laws, which cover issues like eviction processes and lease terms, add another layer of regulation. These laws may change the administrative processes.

Mortgage and Lending Laws

Mortgage and lending laws also play a critical role in shaping the real estate market. Legislation affecting these factors can alter market demand and buyer behavior. Stricter lending regulations make it harder for buyers to secure loans, reducing demand for properties. Conversely, favorable mortgage terms can stimulate market activity by making homeownership more accessible. Keeping abreast of these laws helps real estate companies anticipate market shifts and adjust their strategies accordingly.

Issues Impacting Strategic Planning

Urban Development Policies

Urban development policies play a key role in shaping the landscape of cities and towns. Laws related to urban planning and infrastructure development can create new opportunities for real estate companies. For example, when a city plans to develop a new transportation hub, nearby properties can become more valuable, attracting investors and developers. Real estate companies can leverage these policies by strategically acquiring and developing properties in areas slated for infrastructure improvements, thus gaining a competitive edge.

These opportunities are usually released on a quarterly basis. Getting notified of upcoming opportunities in real-time is essential. With real-time alerts, Plural helps real estate companies stay up-to-date on important legislation.

Economic Policies

Economic policies also impact the real estate market. This includes interest rate adjustments, fiscal stimulus measures, and employment initiatives. Lower interest rates can boost housing demand by making mortgages more affordable. Fiscal stimulus measures can increase disposable income, leading to higher real estate investment. Historical examples include the policies enacted after the 2008 financial crisis, which significantly influenced market dynamics. The economic impacts of the COVID-19 pandemic are yet another example, which experts are continuing to study today.

By understanding and anticipating the effects of economic policies, real estate companies can better navigate market fluctuations and capitalize on emerging trends.

Policy Issues Impacting Corporate Responsibility 

Sustainability and social responsibility are increasingly vital in the real estate sector. Laws promoting sustainable development are crucial for environmental protection. These include green building standards and energy efficiency requirements, among others. Compliance with these laws goes beyond protecting the environment. It also enhances a company’s reputation and market appeal, attracting eco-conscious clients and investors.

For real estate companies, staying up-to-date on legislative changes is imperative. It ensures compliance, optimizes financial strategies, and offers a competitive edge. As the industry evolves, adapting to an ever-changing legal landscape will be pivotal for success. How does Plural help real estate companies meet the challenge?

Plural for Real Estate Companies

Top real estate companies trust Plural for their legislative tracking and stakeholder engagement needs. Learn more about how Plural meets the challenge below.

Best-In-Class Data

Plural’s suite of tools allows for efficient deep dives into legislative information. This includes:

• Tools to discover everything there is to know about a bill
• Legislator and staffer information
• Historical data
• AI-powered insights
• And more!

With Plural, real estate companies turn potential policy threats into manageable challenges.

Advanced Search Tools

With Plural, it’s easy to filter through the noise to find relevant data with advanced search capabilities. Advanced search functionality is a game-changer. Search by keyword, legislature, session, bill status, and more. Plural helps real estate companies uncover the bills that affect their bottom line.

Real-Time Updates

Public policy moves fast — Plural helps real estate companies discover key information quickly. With real-time notifications, Plural users never miss an update. This immediacy transforms real estate companies’ ability to stay ahead and develop actionable strategies.

Global Bill Search

Thousands of bills are introduced in each jurisdiction throughout each legislative session. For real estate companies, finding the exact bills that matter can feel like searching for a needle in a haystack. The ability to quickly and efficiently find the bills that matter is the key to staying ahead. Plural’s Global Bill Search feature offers a sophisticated search engine designed to streamline the discovery process and bring relevant legislation to the forefront. Global Bill Search helps real estate companies discover the national landscape of legislation that impacts their bottom line and operating environment.

Momentum Indicator

Identifying which bills are gaining traction is crucial for real estate companies. These insights guide strategic planning and advocacy. Yet, without the right tools, policy teams must rely on manual tracking and intuition. This often leads to missed opportunities and misallocated resources. Plural’s Momentum Indicator offers real estate companies a novel way to assess a bill’s traction and potential for progress. With the Momentum Indicator, discovering which bills are likely to become law is quick and simple.

Why Plural Is Indispensable for Real Estate Companies

Real estate companies operate in the complex interplay of policy, economic, and societal challenges. In this context, Plural is a powerful ally. Plural offers more than insights; it provides a strategic advantage. With Plural’s tools and insights, real estate companies navigate the policy landscape with confidence. Plural helps real estate companies ensure that they are well-prepared to face future challenges and seize current opportunities.

Interested in learning more? Book a demo today!

More Resources for Public Policy Teams