Becoming an accidental landlord can have its challenges, but there's also a massive opportunity for financial gain if you do it right.
There are more accidental landlords in America than you might realize. For many of them, it's the result of financial complications that leave them unable to afford their mortgage. Whatever the reason you became the owner of a rental property, it's important to take the time to learn how to be a landlord.
In this post, we'll give you 5 tips that can make any accidental landlord thrive. This might not be what you wanted, but keep reading, and you'll be able to make lemonade with these lemons.
1. Make Sure to Get Landlord Insurance
Before you start advertising the property and vetting your first applicants, make sure to talk to your insurance company. You'll need to change your regular homeowners' insurance policy to a landlord insurance policy.
A homeowners' insurance policy covers any and all damages that occur when you're in the home. A landlord insurance policy will ensure that you're covered against any damages caused by tenants while they're in your rental.
2. Talk to Your Lender
It's important to tell your lender of your intent to turn your property into a rental, as it may affect the terms of your mortgage. In renting the property out, the situation poses many more risks to the lender.
The rental market can fluctuate, and they could be worried about your ability to pay your mortgage in this new situation. Contact your mortgage lender to iron out these details before you take on any tenants.
3. Find a Good Tax Accountant
Since you'll be earning income from your rental property, your taxes will change drastically. The easiest thing to do would be to find yourself a good tax accountant that has experience working with landlords in your state. This will help you avoid any issues that may land you in hot water.
4. Hire a Property Manager
Being a landlord is difficult work and, seeing as you didn't intend on becoming a landlord, you may not have time to do it properly. Many accidental landlords end up finding success when they hire a property manager to handle the day-to-day landlord duties.
At Home River Group Raleigh, we'll handle everything from rental marketing and tenant screening to rent collection, general maintenance, and evictions. Hire us, and you won't have to lift a finger, just sit back and collect your monthly rent payments.
5. Gas Safety
There are some things you'll need to do to ensure you're following landlord legal obligations. One of the most important things you'll have to do is follow gas safety regulations for your state. Provide your tenants with copies of gas safety certificates, which you can obtain from a plumber.
Accidental Landlords Can Be Happy Too
Even though you never intended to be a landlord, you can enjoy financial success when you do it right. Accidental landlords are still landlords, so you have to take your duties seriously if you're going to make money from your investment.
To get the best property management in Raleigh, contact us at Home River Group. We're one of the top property managers in the nation, so let us help you maximize your rental property.
