With worldwide inflation and the skyrocketing prices of all goods, people are exploring new ventures to expand their current cash flow. Aside from your day job, investment is another way to earn extra income. There are many kinds of investments to choose from, but the safest method is investing in real estate properties.
Columbus, NE, is a great place to start when it comes to rental properties, whether you're an experienced investor or just starting out in the business.
In fact, in the past, CNN Money Magazine included Columbus, Nebraska, in their list of “Top 100 Best Small Towns to Live." We think this is all attributed to the good quality of life that residents can enjoy in the city and the diversity of job opportunities available, including its primary industries, which are educational services, manufacturing, retail trade, health care, social assistance, and construction.
Columbus experienced a severe deficit in affordable housing units last year. To meet the affordable housing demands in the area, the city government laid out plans to create a workforce housing subdivision, which will include a variety of housing types. Although this is an excellent step to resolve the severe deficit, it would still take quite a while before the subdivision would be completed.
Because of this event, some Columbus property owners who want to sell their houses end up renting them out unintentionally.
So, if you are one of those who found themselves making this sudden transition to a landlord, you know how challenging this situation can be, and you might even wonder if you made the right decision to become one.
Of course, we know that being an accidental landlord isn't easy, but having rental property can be truly rewarding. This includes extra income stream, financial freedom, flexibility in your housing situation, property appreciation, and tax benefits. Overall, one investment that has a lot of good points is rental homes.
If you are an accidental landlord wanting to make the most of your rental property, here are some expert tips on how to thrive in the Columbus rental property market.
Educate Yourself About the Industry and Get All the Knowledge You Can
Knowing your legal duties and obligations is essential if you become an accidental landlord. How well you do in your new job as a new landlord will depend on how much you know.
To do this right, you have to learn everything you need to know about managing properties, from formal best practices to tenant care and handling. By doing this, you'll not only avoid any legal problems that could arise from bad leasing practices, but you'll also find the process much easier because you'll know what to do right away.
Although all these might sound overwhelming for an accidental landlord like you, we are happy to say that you can find a lot of helpful information online for free. You could also seek help from experts, like property managers, on handling your rental properties.
Consider Your Capital for this Investment
Another thing that you have to consider as an accidental landlord is your capital. You have to make an estimate of how much it will cost to rent out the house. You should also research the rental market in Columbus and how much it costs for any necessary renovations or updates. It is also important for you to consider when you can get your money back from your initial investment.
After gathering all this information, it is time to decide if these numbers will work for you.
Adhere to the Landlord-Tenant Laws
Under landlord-tenant legislation, you have just as much legal protection as the renter, so there's no need to feel constrained.
Ensure you familiarize yourself with the ins and outs of fair housing laws and property standards. You may check the city of Columbus's official website to learn more about the landlord-tenant guidelines in your area. You can also find the most recent information on your landlord rights and obligations here.
Another way to ensure compliance with state and federal laws is to consult a professional, such as a property management company.
Get the Necessary Permits and Insurance for Your Rental Property
In addition to knowing the rental laws, you must also get a business permit from the city government. Without it, you could encounter additional inspections, utility delays, and, in the worst cases, penalties. So make sure you comply with your local laws immediately to avoid further complexities and costly fines from your rental business.
It’s also important for you to get rent guarantee insurance. This kind of insurance can financially protect you and give you peace of mind if your tenant doesn’t pay their rent. As an accidental landlord, you can better protect your business and financial interests by looking into the different types of insurance and knowing what you need.
Deal With Your Finances in an Investor’s Perspective
If you want to rent out your home quickly, dropping the rent price is often all it takes. Of course, we know your rental rate is significant, but sometimes it's better to reduce vacancies in your rental property than to get the most money.
While considering this, you should also remember there's no point in keeping the property if you barely get enough rent to pay your mortgage. This is especially true since a rental house will have costs related to normal wear and tear every year.
As an accidental landlord, you must do extensive research about the rental prices in your area to ensure that the price you set is fair and matches your property's value.
Avoid Excessive Home Improvements
We know how tempting it is to make big changes to your rental property right before you put it on the market. But you must also consider whether the renovations you want are worth it.
Making a practical spending plan for your property is crucial as an accidental landlord so that you will not make any unrealistic assumptions about how much money you will make from rentals and cash flow. Instead, you have to think about how the market is doing, how it might change, and how much people want to rent.
For starters, we recommend spending most of your money on maintenance. Ensure your rental home is safe and ready for people to live in. Fix or replace broken furniture or carpets, and save money for the tools and materials needed to repair things.
Choose the Best Tenants
One way to be a successful accidental landlord is to rent your property to responsible tenants. To ensure you're accepting someone you can trust, use a screening process that includes employment verification, background checks, and credit checks.
Never Undervalue Your Tasks as an Accidental Landlord
Most accidental landlords often make the mistake of thinking that owning a rental property is easy. But as you may already know, it is way more complicated than that. You have to be ready to start rolling up your sleeves and give your tasks the time and effort they need.
You may even need to set aside time to talk with your renters regularly to avoid problems and keep a good relationship. You also need to answer their questions and address their issues quickly, and you need to be clear about your rental rules and regulations.
Consult with a Professional Property Management Company
We know that all of these things can be a bit overwhelming, especially to an accidental landlord like you, but you can always enlist a little help when the going gets tough.
Through our team of experts in property management, we at Aksarben Property Management are always ready to help you handle your day-to-day tasks as an accidental landlord. From choosing the best tenants to collecting rent on time and maximizing your return on investment, we are committed to helping you achieve the success of your rental business.
You can check the list of our services here, and you can schedule a free consultation with us. Book an appointment with us now!
