There are millions of accidental landlords and future accidental landlords in the US.
The pre-pandemic housing boom saw many Americans take advantage of incredibly low-interest rates. Now that rates are upwards of seven percent, many of these homeowners are becoming accidental landlords.
That's not the only reason people become accidental landlords, however. Aside from these market shifts, financial issues, relocation, inheritance, and divorce are all common reasons. If you become an accidental landlord, you may be wondering what to do next.
Today, we'll help you navigate this overwhelming situation. Keep reading and you'll see that rental property ownership can have its perks, even if you didn't intend for it to happen.
Research the Local Real Estate Market
Start by researching the local real estate market. Performing market research will help you gain an understanding of how much you can charge for your rental property. In particular, look at homes of comparable square footage with the same number of bedrooms.
Knowing how much to charge for rent will help you make accurate financial projections. You may even consider splitting your home into multiple units to bring in even more monthly income.
Start Your Business
Accidental and intentional landlords alike must treat their rentals like a business. Open a bank account for your rental income and make sure to get landlord insurance.
Taxes will be more complicated as an accidental landlord. This article explains some of the things you'll need to think about as you navigate tax season.
Find Great Tenants
Rental property ownership is much simpler when you have great tenants. It's in your best interest to employ thorough tenant screening practices. Ending up with poor tenants will cause a lot of headaches and potentially cost you a lot of money.
Tenant screening involves looking at an applicant's personal and financial background. You can also take the time to call past landlords and employers to ensure a tenant is the right fit. Good tenants who stick around allow you to maximize your property.
Use a Tenant Portal
When you find a good tenant, you need to do everything you can to keep them satisfied. Part of this is staying on top of property maintenance, another part is responding to repair requests. A happy tenant helps you avoid vacancies, which can be incredibly stressful for any landlord.
The best thing to do is to use a tenant portal. This keeps everything online, streamlining communication and allowing your tenant to easily make requests and pay rent each month.
Property Management for Accidental Landlords
Accidental landlords often feel overwhelmed by their newfound duties. It's important to know you can outsource most of your landlord responsibilities to a property manager.
Good property managers help with everything from rental accounting to tenant screening and management. All that's left for you to do is sit back and collect the income from your rental property.
If this sounds right for you, look no further than Nest Finders Property Management. We're a top property manager in Jacksonville, so contact us to find out about our comprehensive services today.