You've dreamt of many things, but being a landlord was never one of them. Now, you somehow have a rental property under your stewardship.
Whether that happens as a result of inheritance, gifting, or certain life changes like divorce, you now have a property that you can transform into a source of steady passive income. The only problem? You're not well-equipped for the job that lies ahead.
Accidental landlords like you must take time to prepare for the various aspects of rental property ownership and management. Continue reading to learn a few practical tips that will set you in the right direction.
Understand the Law
The rental housing industry is regulated by various federal, state, and local laws. Being familiar with all the relevant laws is key to being a successful accidental landlord. You'll be in a better position to avoid costly fines and even lawsuits.
For example, in Atlanta, Georgia, rental property owners must be aware of the state's landlord-tenant laws that provide for the rights and responsibilities of both parties. Some of your landlord responsibilities include:
- Keeping your property in a safe and habitable condition
- Ensuring adherence to the Fair Housing Act during tenant screening
- Protecting tenant security deposits.
If you wish to use your property for vacation hosting, you might need to obtain a short-term rental license.
Rental Valuation
Although you might not have a rental property investor's mindset at the moment, you still want to maximize your rental income.
One way to do that is to set an optimum rental price. If the rent is too low, you'll not earn as much as you should and if it's too high, it can fail to attract a tenant.
Take the guesswork out of the process by doing a rental valuation. Studying the Atlanta rental housing market will give you insights into rental trends and how factors such as the neighborhood and type of property affect the rental price.
Tenant Screening Criteria
With a rental price tag on the property, you're ready to put it on the market and start getting rental applications. Not so fast, though.
You must have heard stories of horror tenants who refuse to pay rent or turn their rented properties into crime scenes. You could be on the receiving end of such tenants if you don't invest in tenant screening.
At a minimum, develop a tenant screening checklist that all applicants will be subjected to. It should include the following checks:
- Credit history
- Rental history
- Criminal background
- Income source verification
Alternatively, you can outsource the job to a tenant screening service.
Accidental Landlords: It's Your Time to Shine
Accidental landlords have no choice but to fold their sleeves and prepare for the job that awaits them. Learning on the job is a good thing, but not in the world of rental property management.
If this sounds like too much of a task for you, worry not. You can always take a hands-free approach by hiring a property management company. PMI Atlanta OPT is here to make your landlord life easier. Powered by a global property management network that's been in the business for over 20 years, we have the experience and tools to offer excellent property management services.
Contact us today to learn more about our work.
