You didn't set out to be a landlord, but here you are with a rental property.
How did you end up in this situation, though? Perhaps you inherited a property and decided to rent it out instead of selling it. Or housing market conditions that have forced you into renting out your home.
Being a landlord comes with many responsibilities, and many accidental landlords often struggle to keep up.
To help you navigate your way, we're sharing a few helpful tips. Come along with us!
1. Understand Local Laws
It's a free country, so you should be able to rent out your property whenever you wish, right? Well, that's primarily the case, but there are landlord-tenant laws that spell out the rights and responsibilities of each party.
In Chester County, PA, for example, landlords must obtain a certificate of occupancy before letting a property to a tenant.
Fair housing and equal opportunity laws prohibit landlords from discriminating against consumers because of their color, race, country of origin, disability, sex, or family status. Security deposit laws regulate the maximum amount of money landlords can require to pay as security.
Familiarizing yourself with the relevant laws will help you ensure compliance in all your dealings as a landlord.
2. Draw a Lease Agreement
Although it's not a legal requirement to have your tenants sign a lease, it's good practice. Unlike month-to-month arrangements, a lease (at least one year) brings stability, helping keep the tenant turnover rate low.
Plus, you can include the conditions that the tenant must comply with. For example, if you want to prohibit pets, put it in the lease agreement. If you want the tenant to pay rent no later than the fifth day of the month, or if you wish to impose a fine for late rent payments, a lease agreement will come in handy.
This is a legally binding document, so you can take appropriate action if the tenant violates it.
3. Screen Your Tenants
As an accidental landlord, comprehensive tenant screening might not be on your to-do list. As long as a renter proves they can afford the rent, you might see no other reason to turn them down.
However, there's a lot more you need to check before accepting a rental application. In addition to credit and employment history checks, it's crucial to check eviction and criminal background history.
Finding quality tenants who will pay rent on time and use the property responsibly will make your life easier.
Accidental Landlords Need Professional Help
Rental property management encompasses so many tasks that it's hardly possible for most accidental landlords to be successful. From tenant management to property maintenance, property accounting, and property marketing, you'll quickly be overwhelmed.
Thankfully, you don't have to lose sleep over your rental property. Nor do you have to give up on being a landlord. You can hire a full-service property management company and they'll handle everything for you.
Get in touch with us at Key PA Property Management and let's turn you from an accidental landlord into a successful property investor.
