Have you just inherited property unexpectedly? Did you decide to move and not sell your house? If so, you can consider yourself part of an exclusive club of accidental landlords.
So, what are the next steps? You need to fulfill every legal obligation before renting out your property. This way, you can avoid messy legal problems and your future self will thank you.
Here are some things to consider for your rental property if you are an accidental landlord.
Get the Right Insurance
You may be familiar with regular homeowners insurance. However, when you become a landlord, you may need a different insurance policy to ensure you're fully covered.
Although it is not legally required, landlord insurance has many benefits. For instance, you will get loss of income insurance, liability insurance, and property damage insurance if you elect to have a landlord insurance policy.
Use a Property Management Company
You may feel overwhelmed when you become an accidental landlord, especially if the owner of the home you inherited is no longer around. In this case, working with a property management company may be best.
A property management company can handle all aspects of being a landlord, from security deposits to property maintenance. Their level of involvement is completely up to you.
In addition, a property management company can help you navigate property law if you have questions or concerns.
Keep All Documentation
Make sure you never throw away documentation for your property or your tenants. Keep documents stored in a physical location, or ideally, on the cloud.
If you have a tenant portal, you can upload documents such as lease agreements and rent payment receipts. This will be beneficial for both you and your tenants in the future.
Utilize Tenant Screening
One of the best ways to avoid tenant problems is to weed bad tenants out from the beginning. Tenant screening is a great way to make sure only the best tenants rent your property.
You can conduct your own tenant screening process, or use something like a tenant placement service. This is an outsourced way to get qualified tenants with no work on your part.
Keep Up With Property Maintenance
As a landlord, it is your legal obligation to ensure the property is livable for your tenants. Although keeping it clean and in good shape is the tenant's responsibility, you need to stay on top of property maintenance to avoid things like lawsuits.
Make a list of things you need to check on and how often. It will be much easier to do regular inspections, rather than wait for a huge repair that will cost a lot of money.
Try These Tips for Accidental Landlords
You don't need to fret if you suddenly join the accidental landlords club. Use this guide to make sure every aspect of your property has the right legal protection.
Looking for a company to partner with for all things property management? Aksarben Property Management is the perfect choice.
With our experienced team, we can help you navigate new property ownership. Contact us today to get started.
