You've just inherited a house from a relative, or maybe you're relocating for a new job but can't quite bring yourself to sell your old home.
Either way, you're now the proud owner of a rental property - and a landlord. But wait, you didn't plan for this! No spreadsheets analyzing rental yields, no late-night research into tenant laws.
You're not alone. Welcome to the world of accidental landlords - a growing group of property owners navigating the rental game without the luxury of preparation.
Luckily, we can help. Read on to learn what accidental landlords need to do.
1. Set Competitive Rent Prices
Determining the right rent price is crucial for attracting quality tenants and minimizing vacancies. As a new accidental landlord, start by researching the rental market in your area. Look at comparable properties with similar features, such as:
- Square footage
- Amenities
- Location
To see what other landlords are charging. This will give you a benchmark to ensure your rent is aligned with market expectations.
Overpricing your rental may lead to extended vacancies, while underpricing could result in missed income opportunities. Strike a balance by assessing the value of your property and the demand in your neighborhood.
Be transparent about rent pricing when marketing your property. Highlight features that justify your price, such as:
- Updated appliances
- Parking
- Proximity to amenities
2. Hire Property Managers
Property managers bring professional expertise for managing tenants, helping you figure out being a landlord while ensuring your new property remains profitable.
One significant benefit is tenant screening. Property managers:
- Conduct thorough background checks
- Verify references
- Ensure potential tenants meet financial qualifications
Reducing the risk of problematic renters.
They also handle rent collection, ensuring payments are on time and enforcing lease terms consistently. This reduces the likelihood of late payments or disputes, giving you peace of mind.
3. Document Everything
Keeping accurate records helps you stay organized, ensures compliance with legal requirements, and can provide crucial evidence in the event of disputes with tenants.
Document your property condition before anyone moves in. Take detailed photos and videos of each room, focusing on areas prone to damage, such as flooring, walls, and appliances. This serves as a baseline for comparison when the tenant moves out, making it easier to address security deposit disputes.
Keep a copy of all signed agreements and forms, including the lease, tenant applications, and any notices sent to or received from tenants. These documents should go through the responsibilities of both parties, such as rent payment schedules, maintenance obligations, and lease terms. Storing these records digitally can ensure easy access and backup.
Accidental Landlords: Get Started
There's a lot that accidental landlords need to do to succeed. With these first-time landlord tips, you should have a much easier time.
Are you ready to get started with property management advice? At HomeRiver Group, we understand the challenges of being a new accidental landlord. As the premier national residential property management company, we bring local expertise, cutting-edge technology, and comprehensive services to make your rental property a seamless success.
From acquisition to leasing, maintenance, and beyond, our team is dedicated to delivering integrity, performance, and respect every step of the way.
Contact us today.
