Suddenly owning a rental property can be a stressful and potentially overwhelming experience. The circumstances leading to ownership are not always positive. Then, there is the new real estate to manage.
Accidental landlords have a potentially profitable opportunity. Follow these steps as a new landlord to protect yourself, the property, and the tenant.
Rent or Sell the Property
Your first decision as an accidental landlord is whether to keep or sell the property. Depending on current property values, selling may be your best option. However, you may want to talk with an estate attorney to determine your potential tax liability for suddenly owning and then subsequently selling real estate.
If you decide to keep the property, you must introduce yourself as the new landlord to the tenant. Explain the situation to them so they do not feel left out of the loop.
Learn Landlord/Tenant Law
Your first task should be to learn Florida landlord-tenant law. As a landlord, accidental or not, you must follow the law. Ignorance of the law is no excuse for breaking it.
If you violate landlord-tenant law, you can violate the tenant's rights, which could result in a lawsuit from the tenant.
Buy Landlord Insurance
Buying insurance should also be a priority task. As the landlord, it is your responsibility to maintain a safe premises. Suppose someone gets injured while on the property; you could be liable. Liability insurance will provide coverage.
You also need property insurance. It protects you in the event of the property getting damaged.
Additional insurance policies can also provide additional landlord insurance protections. These include vacancy, eviction, and rent protection insurance.
Create a Maintenance Plan
Now that you own a rental property, you must treat it like an investment. Create a maintenance plan that will make taking care of the property simple.
Create a list of seasonal and annual maintenance tasks. Contact reliable local contractors to perform the work.
Hire a Property Manager
If you are a first-time rental property owner, consider hiring a property management company. That way, you can have a team of experienced property managers handling the day-to-day activities.
They can provide local real estate marketing if your property does not currently have a tenant living in it. They can do the tenant screening, helping you place a quality tenant in your rental property. You can use their network of contractors to initiate a maintenance plan.
Their experience and guidance will reduce the amount of landlord stress you experience.
Accidental Landlords Have a Unique Opportunity
When accidental landlords unexpectedly become owners of rental property, they have an opportunity to turn the real estate into a profitable investment. The first step is to learn the law and buy insurance.
Your next steps should be establishing a maintenance plan and hiring a property manager. The team at PMI Best Assets helps all types of rental property owners manage their properties.
Feel confident about your new status as a landlord with the support and guidance of the property managers at PMI Best Assets.
