Accidental landlords used to refer only to people who inherited properties being leased to tenants. While this still happens, current economic trends are creating a new class of accidental landlords.
A growing number of people want to sell their houses but can't find buyers because of high real estate prices. Desperate to move on with their lives but unable to abandon their asset, they turn to leasing the place for a fee.
If you find yourself in either category, this article is for you. These five tips will help you navigate the new responsibilities you never saw coming.
1. Get a Separate Bank Account
Getting a separate bank account tidies up a vast array of issues pertaining to the landlord business. It simplifies tracking transactions, tax filing, and monitoring your business's performance. Furthermore, you'll also need to open a separate account for each security deposit you collect per Florida's law of lease.
2. Meet and Screen Prospective Tenants
If you "inherited" tenants, then you must meet them and establish good tenant relations as soon as possible. This working relationship will make navigating both parties' responsibilities much more straightforward. If you're looking for prospective tenants, include tenant screening in your search.
3. Invest in Education
A vast body of laws regulate the tenant-landlord relationship. It's vital that you become educated in all the laws that govern your rental agreement, what to do in the event of a breach of lease, zoning laws, neighbor law, and rental property accounting and tax practices.
4. Speak to a Property Manager
You might find that you can't keep up with all the work being a landlord takes. Property managers are there to assist in these situations.
Many landlords like using a service or tool that diminishes the workload. Tenant placement, lease management, and rental property accounting are examples of the services you can use. Investing in a tenant portal also has a similar simplifying effect.
However, some landlords have no capacity for extra work. Full-service property management addresses whereby a manager takes over all the responsibilities from the landlord for a monthly fee.
5. Reach Out to Other Accidental Landlords
Learning from others' experiences is one of the best ways to get things right the first time. Speaking to accidental landlords who have found success in their stories is an excellent way to propel yourself up the learning curve.
There are several ways to find and connect with other landlords. Social media and real estate associations are more wide-arc approaches. If you want personal connections, you can always ask your local property manager if they can connect you with anyone.
Run Your Rental Business Like a Professional
If you find yourself with an unexpected lease, you have many options. Firstly, there's no need to do it alone. Learn all the tricks from a property manager or successful landlords who started as accidental landlords.
Secondly, implementing the best practices (like a separate account, tenant screening, and ongoing education) sets you up for success early on. These practices boost your chances of success and mitigate risk.
Working with a property manager makes owning a rental property much easier. PMI Palms combines experience and technology to provide the best realty service in Dunedin, Florida. Let us help you grow your business.
