By mid-2023, interest rates on mortgages were just under 7 percent. However, homeowners who purchased their properties years ago had access to much lower interest rates and more affordable mortgages.
As a result of these changes, more people than ever before have found themselves taking on the role of landlord to help cover costs. If you're one of those unfortunate property owners, you'll need to do a lot of research before you risk renting out your space. The last thing you want is to find yourself in a legal situation.
Here are four facts to know before accidental landlords take on a rental property.
1. Landlord Legal Responsibilities
One of the most important property management tips is to look up your legal responsibilities as a landlord. Every one of your tenants has the right to safe, healthy housing. They also have the right to complain about their living situation without fear of retaliation.
As their landlord, you must keep your property in good condition and make any necessary repairs. Some of the various areas that fall under your purview include:
- HVAC systems
- Plumbing systems
- The building's structural integrity
- Insulation
- Electrical
2. Tenant Management System and Strategy
The next bit of rental property advice is to develop a solid tenant management strategy. Your strategy should include how to get reliable tenants and get them to renew their leases.
Screen tenants thoroughly to make sure they have a good track record. Your background check should cover credit checks, employment verifications, and a criminal record.
Set clear expectations and outline the rules for living on your property. Maintain a clear line of communication with tenants so you can answer maintenance requests promptly.
3. Rental Income Strategies
Generating rental income from your property isn't as simple as setting a price and leasing it out. It's irresponsible to charge too much or raise your rent without good reason.
You'll need to research rent in your area to create competitive prices and minimize vacancies. It's also important to utilize regular maintenance to keep your property in good condition.
4. Consider Property Management Services
One of the most important decisions as a landlord is if you will use property management services. A property manager can help you maintain your properties while you work your main job or otherwise live your life. They can handle tenant complaints, maintenance requests, and rent collection.
Another reason to try out a property management service is because they can help you with legal responsibilities. You won't have to worry about messing up paperwork with their help.
Facts for Accidental Landlords
Accidental landlords need to take their position seriously, even if they're new to the job. There are legal responsibilities and expectations that landlords must consider. They also need to take into account what a tenant wants and needs.
PMI Chevy Chase provides property management services you can trust in the Chevy Chase area. We're part of a nearly 20-year-old franchise that's been dominating the industry. Reach out today to learn more and schedule a consultation. for your residential properties.
