There are many reasons why people become accidental landlords, including not wanting to sell a property for sentimental reasons or inheriting a property they do not want to live in. In the United States, accidental landlords represent about 30 percent of the real estate rental market.
If you are a first time landlord in Greensboro, North Carolina, you may not know how to make the most out of your property. Avoid losing revenue and ensure your property and investments are protected with a few helpful tips.
1. Accidental Landlords: Get Consent to Let
Before you dive into the rental market, it is important to let your lender know you are planning on renting out the property. You need to change the intent and get what is called "consent to let".
Some lenders will have no issue with this, while others may require you to make changes to your mortgage terms to accommodate the new leasing terms.
2. Get Landlord Insurance
As an accidental landlord, you will need to change your current insurance policies to landlord insurance. Landlord insurance will protect you against heavy financial losses, and it will ensure you do not run into any issues with the law.
Always seek advice on the type of insurance policies you need, because you may also need extra coverage, like rent guarantee insurance.
3. Hire a Property Manager
Dealing with the day-to-day tasks of managing a rental property can be impossible for people who work full-time. When you hire a property management company, you can get help with finding tenants, and you do not have to worry about dealing with repairs or maintenance.
The property manager will collect rent, will know how to set the right rental rates, and will even marker and advertise your property.
4. Know Your Legal Requirements
There are legal requirements every property must adhere to when being rented out. Gas safety checks are one of these, and they have to be performed every year. Along with this, you may want to check the appliances.
You will need to have a smoke and carbon monoxide detector on every floor of the property. The property must also have a valid Energy Performance Certificate (EPC), or it cannot be marketed.
5. Get Taxes in Order
Many landlords have run into issues with their taxes because they did not file for landlord taxes right from the start. As a landlord, you will be running a business and need to declare income and expenses.
Reach out to financial advisors to help you get the paperwork in order.
Turn Your Property Into Steady Income
Becoming an accidental landlord may not have been your plan, but it can be an excellent way of getting a steady and passive income. To avoid the daily tasks that accidental landlords face, however, you may want to find a property manager.
At HomeRiver Group, we are here to help you with all of your property management needs. We are a dedicated team in Greensboro, North Carolina, ready to offer services that exceed industry standards. Contact us right now!
