With the statistics showing that 20 percent of renters are behind on rent, it's obvious that becoming a landlord is never easy but despite the challenges, it can be rewarding.
Becoming an accidental landlord can also spark its special challenges. Owning property, that you never planned to have can be overwhelming.
Fortunately, there are a few tips you can follow to ensure that your journey as a landlord goes smoothly. Here are some of the best tips for accidental landlords.
1. Get Insured
One of the first things you should do is to make sure that you are insured. You may need to change your homeowner's policy to a landlord's insurance policy. You may also need to take out a brand new policy altogether.
This policy is essential because it will cover damages that tenants can cause on the property.
2. Sort Out Your Taxes
Since you'll be earning money on your rental property the best thing you can do is to find a good accountant to help you with your taxes. Getting your taxes filed correctly is critical. If not you could find yourself in serious problems with the IRS.
If you can't afford an accountant right away then you might want to get accounting software to help you.
3. Find a Property Manager
Hiring a property manager is probably one of the best moves you can make as an accidental landlord. This is especially important if you have a large property.
It will be difficult for you to manage your property and still carry on with your everyday activities. Hiring someone to take care of all the details such as complaints, maintenance, upkeep, collecting rent, and filling vacant units can make your life a lot less stressful.
4. Consider Tenant Safety
Tenant Safety is something that should be at the top of your mind as a landlord. You want to make sure that your property is safe for renters.
You should try to install surveillance cameras where possible. There are several smart technologies that you can also incorporate into your security system. Also, consider having an automatic gate where necessary.
5. Have Airtight Lease Agreements
You must have lease agreements that are airtight before you rent any units in the building. Sometimes tenants can be disagreeable for very pretty reasons and it is a good idea to make sure that you have covered all the legal bases.
A lease agreement should outline how much the tenant will pay for rent, and how long the lease will last.
Accidental Landlords Can Flourish
Accidental landlords can find their new role challenging. This is normal. The key to surviving the whole experience and flourishing is to make sure that you are organized.
Get the property fully insured as soon as possible, take care of your taxes, hire a property manager if necessary, and have a good lease agreement with your tenants.
This will make it easier for you to get the maximum profit from renting the property. If you would like help with property management, please contact us.
