In America alone, there are an estimated 48 million renter households.
Many of these households are managed by large rental corporations or private individuals wanting to make some passive income. Becoming a landlord comes with a handful of duties no one warns you about, but what happens when you become an accidental landlord?
Yes, that's right. Some people find themselves becoming a landlord by surprise and with no preparation.
If this describes your situation, don't panic. We're here to help with our below list of 5 things accidental landlords must do!
1. Decide On Rent
Whether you inherited a rental home from deceased parents or found yourself taking in extra roommates, it's important you're collecting rent.
Decide how much rent will be each month. Discuss the price with your tenants, and communicate when it's due and how they'll pay their portion.
If you aren't sure how to price your rent, take a look at other rental homes in your area for a general ballpark idea.
2. Screen Tenants
Always screen tenants before you agree to let them live within your properties.
Take a look at their credit history, rental history, current income, etc. Looking at these things protects you from troublesome tenants and other liabilities.
Most rental companies charge a small fee to run background checks. Make this fee clear to your potential tenants when they ask for an application.
3. Understand Your Role
Becoming an accidental landlord is overwhelming, but it's important to understand your landlord obligations as soon as possible.
Research your state's rules regarding tenants and landlords. Document your rental income. Draft legal contracts to sign along with your tenants.
Getting your ducks in a row now will save you from heaps of trouble in the future.
4. Evaluate The Property
Property maintenance is one of your top obligations as a landlord.
Take a day to walk around and through your property, before your tenants move in if possible. Make notes of any damages or areas in need of renovation.
Fixing up the property is important for your tenant's safety and wellbeing, and a little maintenance boosts the overall value of the property.
5. Detach Your Emotions
Watching someone move into a place you once called home can be emotionally taxing for anyone, especially if it's a home you inherited from deceased family members.
Take time to process your emotions regarding your position as an accidental landlord. It's okay to feel overwhelmed, uncomfortable, or sad.
Hire a professional property manager if you need help.
Help For Accidental Landlords
Accidental landlords are more common than one would think. Luckily for them, we've provided 5 excellent tips in the above guide.
There's no such thing as a perfect landlord, but taking time to understand your obligations will help you get close! Read up on all of your state's laws, and document everything to save yourself.
Are you in need of a property management company in the Orlando area? Check out our list of services for owners and investors, and contact us today with any questions.