Accidental landlords are people who didn't decide to become investment property owners as a career choice. Very often, they inherit a home that's either vacant or already has tenants in it.
In other cases, a homeowner might need to move. With interest rates as they are and an unpredictable property market, these people might decide to rent their home instead of selling it.
Whether you choose this path or not, being a landlord comes with many responsibilities. Read on to discover how accidental landlords can get started in their new role.
Learn Local Legalities
Every state has laws governing the relationship between tenants and landlords. You must familiarize yourself with them as soon as possible and check for updates regularly.
If you've inherited a home with tenants in place, get a legal expert to help you go through their lease agreement. You must ensure it complies with relevant local legislation.
In California, you must register as a landlord, and you're also required to pay income taxes on all rental income. You can deduct any relevant expenses from the total income received.
Landlord insurance isn't compulsory in California, but it's important to cover potential property damages.
Get Your House in Order
As a landlord, you must create and maintain a safe, habitable space for your tenants. So, it's important to go through the home and look for any areas that need some TLC.
Take care of repairs and consider carrying out energy-saving upgrades or value-adding improvements. Well-maintained, clean, and ordered homes fetch higher rentals and encourage lease renewals.
What Is an Accidental Landlord Responsible For?
Like any landlord, accidental landlords must fulfill several roles to ensure the success of their investment properties. Some of the aspects you'll need to take care of include:
- Marketing to find new tenants
- Tenant screening
- Lease administration
- Ongoing property maintenance
- Property inspections
- Ensuring lease compliance
- Rent collection
Emergency repairs are one of the most stressful things that a landlord must deal with. Your tenants can call you at any time of the day with these problems, and you'll need to respond promptly to protect your home from further damage.
In many cases, being a landlord can become a full-time job, especially if you're unfortunate enough to inherit bad tenants. Inevitably, this stressful scenario can result in eviction proceedings.
In this case, you'll need help from someone who knows the law inside out and who has the experience to ensure you come out of the situation relatively unscathed.
Assistance for Accidental Landlords
Being an accidental landlord involves a steep learning curve. You must inform yourself about your legal obligations and carry out a wide range of tasks to ensure profitability for your property.
Most accidental landlords can do with some help managing it all, and this is where a property manager can be of invaluable assistance.
Provident Property Management offers a full range of property management services, including marketing, tenant screening, and financial reporting, on behalf of landlords. Explore your options for effortless property management in San Jose, CA.
