Back then, the most common way of becoming an accidental landlord was by inheriting a property with tenants living there. Today, however, many more people are becoming accidental landlords because selling a property is more challenging and expensive than renting it out. If you're in either of these situations, this survival guide is here to help you.
How best to manage your landlord duties depends on how you became a landlord in the first place. Check out these tips to help you navigate and administrate the lease you never saw coming.
Meet With or Screen Tenants
If you've inherited a property with tenants, the first thing you should do is meet with them and introduce yourself as the new landlord. Establishing a cordial relationship with your tenants can significantly simplify your life as a landlord.
However, if you have an empty place or are renting instead of selling, tenant screening must be part of your tenant placement strategy.
Set a Good Rental Price
Setting a good rental price is vital to making your accidental holding work for you. Too high a price can scare prospective tenants off, while a low price will make the asset unprofitable.
Find the balance between these two points by surveying the rental prices in the local neighborhood. You can do this by speaking to an expert property manager or checking the HUD webpage's stats.
Learn About the Applicable Laws
Pretty much everything in the landlord-tenant relationship and the rental business is regulated by a law. Contract law, property law, and government regulations (a few sources) all manage their own elements of the rental game. To be the best landlord, you need to be on top of all the essential laws.
The four most important legal issues to master are the laws regarding discrimination (to make screening practices fair), security deposits, tax laws, and property maintenance issues (also called tenant and landlord duties). Dealing with these four legal areas comprises more than 90% of what you do as a landlord.
There are a few ways to cover your legal bases. The first is speaking to an attorney or accountant and getting all the legal information from them. Because many of these professionals charge by the hour, you'll only be able to get advice with this and not help.
A cheaper (but arguably dangerous) alternative would be relying purely on your own research. Because these are professional fields, you might be exposed to mistakes that the experts wouldn't have let you make.
The best way to get what you need is by contacting a property manager. Their expert assistance and information is affordable and tailored to your needs.
Get the Best Advice for an Accidental Landlord
If you find yourself being an accidental landlord, you're not alone. Many people today are finding themselves unexpectedly running rental properties.
To do the best job, be sure to screen and meet tenants so that you can establish a good working relationship. Set a rental price that's competitive so that you don't lose tenants to other landlords. Also, get comfortable with the leasing laws in your State.
RightHouse Realty has a team of experienced property management experts ready to help you with all your accidental landlord needs. Find the best information and help in Orlando and become a stress-free landlord.
