Being an accidental landlord is often a welcome development, but transforming it into a success story can be easier said than done.
Whether you just inherited a house and don't intend to live in it or you have to relocate and don't want to sell your current home, renting it out is an ideal way to make good use of it. The potential reward of earning a steady passive income isn't something to let go of quickly.
That being said, you must prepare yourself adequately for what lies ahead. Keep reading to find landlord advice that will help you get started on solid footing.
Understand Landlord Rights and Responsibilities
If you're a homeowner, you might think that renting the property is as easy as finding a tenant and getting ready to collect the rent. There's a lot more to it. In fact, you're assuming a lot more legal responsibility than you'd like.
As such, the first thing is to familiarize yourself with your rights and responsibilities as a landlord in Putnam, as well as the rights and responsibilities of renters. Connecticut landlord-tenant law provides regulations for things like:
- Evictions
- Security deposits
- Property repairs and maintenance
- Rent collection.
Any action you take must not violate any law, otherwise, you could find yourself facing heavy fines and endless lawsuits.
Prepare the Property for Renting
Since you're now a landlord by accident, the property might not be in the best condition for renting. Hire an inspector to comb through it and identify areas that might need repairs or upgrading. Remember you're legally required to ensure the property is safe and habitable for tenants, so you cannot skimp on the inspection.
If it's in good condition and doesn't require any repairs, give it a thorough move-in cleaning. Prospective renters will want to view it before moving in. You want it to give a good first impression.
Rental Analysis
How much rent are you going to charge?
You might have a rough figure in mind based on your valuation of the property, but there's a lot more that goes into determining the right amount to charge. Rental analysis is the process of analyzing various factors, including current rental market conditions, to establish the property's rental pricing.
If you set the rent without proper research, you could end up undercutting yourself. A higher rent that cannot be justified could see the property sit without a tenant for several months, and a lower rent means you won't maximize your rental income.
Tenant Screening and Onboarding
Now you're ready to list the property and start getting tenant applications. But do you have a tenant screening checklist first?
To find the best tenants, you must check their background, including credit history, rental history, employment records, and even criminal history. It's not enough to find a renter who can afford the rent. They must also be responsible people who will use your property respectfully and co-exist peacefully with other tenants.
Accidental Landlord: Embrace Professional Property Management
You might be a hands-on accidental landlord who wants to handle all tasks, but owning a profitable rental property isn't easy. Turning to a professional property management company can turn out to be the best decision you've ever made.
In Putnam, CT, PMI Putnam is the go-to property management company. Our services are delivered by licensed experts with extensive experience in real estate, property management, tax, and accounting.
Contact us to start reaping the rewards of being a landlord.
