Accidental landlords are people who've found themselves with a home full of tenants without consciously investing in property. Some reasons behind this phenomenon include moving in with a partner, a temporary work relocation, or inheriting a property.
Whatever the reasons for unintentionally becoming a landlord, there are many things these property owners can learn from the experts.
Read on for our best landlord advice for navigating this new terrain.
1. Get to Know the Denver Real Estate Market
In Denver, all landlords need to acquire a license from the City and County of Denver before accepting tenants. You'll also need a good understanding of the local real estate market before you advertise your property for rent.
Understanding your target market and tenant preferences in the area will help you engage in effective property marketing to maximize your profits.
Other legalities that apply to Denver landlords include the Fair Housing Act, laws about habitability standards, and Bill HB23-1099, which applies to tenant screening.
2. Screen Your Tenants Thoroughly
Bad tenants are a landlord's worst nightmare. They don't pay their rent on time and may even damage your investment property.
It's vital to carry out thorough tenant background checks to ensure you place good tenants in your rental unit. These include looking at things like employment verification, landlord references, and credit checks.
You must carry out tenant screening according to prevailing laws.
3. Communicate Clearly
By communicating the terms of the lease clearly at the outset, you can avoid misunderstandings and alleviate landlord stress. Your lease should state all your expectations in detail.
Ongoing communication with your tenant regarding maintenance, repairs, and lease renewals encourages good tenant relations and can help lead to lease renewals.
4. Budget for Necessary Expenses
People often refer to the proceeds from a rental unit as passive income, but nothing could be further from the truth. Managing an investment property involves ongoing effort and many unexpected costs.
You must budget for routine maintenance, unexpected repairs, and your annual tax obligations. Effective budgeting and precise record-keeping are central to your success as a landlord.
5. Hire a Property Manager
A property manager can assist you with every aspect of your rental unit. They have the experience to help you navigate market conditions, find great tenants, and budget effectively.
Their property inspection and maintenance coordination services help you save money and preserve the value of your property. Their industry knowledge prevents you from falling foul of local laws and helps you avoid costly, time-consuming lawsuits.
Get Expert Help and Thrive at Being a Landlord
Being a landlord involves gathering the knowledge you need, screening your tenants thoroughly, communicating clearly, and being conscientious about your expenses. All accidental landlords can benefit from working with an experienced property management company to help them with their rental units.
PMI Aspire is independently operated by a local broker and backed by a franchise with over 20 years of real estate experience. We harness state-of-the-art technology to help our owners stay up-to-date with their properties' performance.
Reach out to get the help you need today.
