Helpful Tips for Accidental Landlords
With an aging Baby Boomer population, more family members than ever before are becoming accidental landlords.
An accidental landlord is anyone who unintentionally became the owner of rental property, and they are not sure how to proceed.
Thankfully, being an accidental landlord is not the end of the world, it’s quite easy to learn what it takes to successfully manage a rental property, and get that rental property into profitability, simply by following these tips.
Tips For Accidental Landlords
The first thing that accidental landlords must do is meet with their new tenants to put the tenant’s mind at ease regarding the landlord’s intentions for the property.
If the goal is to sell the property, the tenant must know in advance, but if the goal is to keep the rental, the tenant also must know who their new landlord is and how to contact them.
Tip #2 – Review the Tenants Lease
Another important thing to do immediately after inheriting a rental property, and becoming an accidental landlord, is to review the lease for the rental property.
It’s important to know the details of the lease, including what the tenant is paying for rent, when it’s due, how it’s supposed to be paid, and the penalties that the tenant will face if they pay rent late.
Tip #3 – Review the Condition of The Property
Within that first month of becoming an accidental landlord, another important thing that should be done right away is to assess the condition of the Portland Oregon rental property.
This assessment should be done by a qualified inspector who will take the time to thoroughly inspect every single aspect of the property including the basement, foundation, roof, electrical, plumbing, heating, and cooling.
The goal of this inspection should be for the accidental landlord to have a thorough understanding of the current shape of the rental property so that they can assemble an action plan for things that need to be done right away, versus repairs that can be delayed for 6 months or longer.
Once the assessment is done, the owner of the rental property should take the time to tour the property themselves as well and ask the honest question “can they see themselves living in that rental property”?
If the answer is no, the appropriate steps should be taken immediately to get that rental property in better condition so that the landlord won’t think twice about living there or offering it as a viable place to live to their loved ones or friends.
Tip #4 – Get Landlords Insurance
After taking the time to review the condition of the rental property, another important thing to do is to get landlord’s insurance.
Landlords’ insurance is different from homeowners’ insurance because it provides the landlord with extra protection, especially since the rental is a business asset that’s going to be producing income for the new landlord monthly.
Tip #5 – Confirm That the Tenant Has Renters Insurance
Besides getting landlords’ insurance, new landlords should also confirm that their tenants have renters’ insurance as well.
Renters’ insurance protects the tenants’ best interests, especially if there is a fire, flood, or act of nature that destroys their possessions within the property.
The insurance policy will provide the tenant with a cash value replacement payment so that they can get their belongings replaced.
Tip #6 – Make Improvements to The Rental Property
Once it’s been determined that the property is in good condition, and well maintained, the next thing that the accidental landlord should do is take steps to add additional features or amenities to the rental property which will enable them to grow their Rental income.
Some of the things that can be done to increase rental property income include: adding additional amenities like on-site storage, a washer, and dryer, a laundry room, building a deck on the property, or adding a space where tenants can park their RV or adult toys a monthly basis.
Most tenants will be open to taking advantage of additional features or amenities that are offered at their rental property, especially if they are paying for comparable services elsewhere monthly.
Tip #7 – Treat the Rental Property as A Business
If the accidental landlord’s goal is to hang on to the property for any length of time, and not sell it, they should also be willing to immediately treat the rental property as a business.
This means that the landlord should inform their tenant that there are multiple ways that the tenant can get in touch with the landlord when needed including by phone, text, or e-mail should they need maintenance assistance, or have questions or concerns about their rental property.
Since being a landlord can be a 24/7 job, accident landlords should also consider hiring a property manager to take the time and hassle of managing the rental properties themselves off their shoulders.
Property management companies like Rent Portland Homes – Professionals specialize in full-service property management including: tenant selection, maintenance, customer service, and more so that owners don’t have to do any of the work themselves and they can enjoy earning passive income from their rental properties.
In today’s rapidly changing rental market, it makes sense for landlords to hire property managers to manage the rental properties because professional property management companies will also stay on top of the latest changes to the laws and regulations related to rental properties so that owners don’t have to.
At Rent Portland Homes – Professionals, we specialize in full-service property management for the Portland Oregon area.
Our team of trusted property management professionals saves owners the time, money, and hassle of managing their rental properties themselves.
To learn more about the services that we can offer you, contact us today by calling (503) 447-7735 or clicking here to connect with us online.