An accidental landlord is someone who inherits a property with tenants in place. Many of them hasten to sell these homes as quickly as possible, but that isn't always the best option.
According to information published by the Utah Kem C. Gardner Policy Institute, Utah's rents increased by 11% between 2020 and 2022 amid high demand. So, both intentional and accidental landlords can look forward to consistent earnings from their properties.
For many people, becoming a landlord is an opportunity filled with uncertainty and pitfalls. Keep reading for the best landlord tips to help you make the most of it.
Learn the Ins and Outs of Rental Properties
If you want to become a successful landlord, you should spend some time finding out about the responsibilities involved in managing a property.
First, familiarize yourself with Utah's laws concerning tenant rights. If necessary, get a lawyer to explain the complicated parts to you.
Next, you must consider the financial aspects involved with being a landlord. You will receive income from rentals, but you'll also incur costs. These include utilities, property taxes, income taxes, routine maintenance, and repairs.
It's a good idea to carry out a property inspection and meet with the tenants. In some cases, you may need to make repairs or upgrades to the property to ensure the safety or comfort of your tenants.
Finally, consider whether you have the time to focus on managing tenants and keeping your property maintained.
Take Out Insurance
Next, you should follow up on some of the paperwork involved in renting a home to tenants. Take a look at the lease, so you're familiar with the tenant's expectations and what they expect of you.
Make sure the tenants have renters insurance and take out landlord's insurance on the property. These policies protect you from any damages caused by tenants.
Work With a Property Manager
Hiring a property manager relieves you of all the hard work and time-consuming tasks associated with managing a rental property. A reputable property management firm has the expertise and experience to help you interpret the terms of the existing lease, calculate your ROI on the rental property, and manage tenant demands.
They also offer services like:
- Rental analyses
- Tenant screening
- Rent collection
- Eviction protection policies
- Routine property maintenance
- Property inspections
- Tenant communications
When you inherit a property with tenants in place, you'll need to pay taxes on your extra earnings. Property management firms can help you with accounting and tax preparation services, too.
These experts help ensure you keep track of your finances and benefit from any valid tax deductions.
Help for Accidental Landlords
Owning a rental property can be a lucrative and fulfilling pastime, provided you're well-informed and get the help you need.
Accidental landlords rarely have the time or skills to cope with everything involved in property management on their own. A professional property manager will see to it all, including late-night calls from tenants for emergency repairs.
We can assist all types of landlords with every aspect of property management. Get in touch to discuss your needs today.