A loved one has just passed away or you've suddenly inherited property. What do you do next?
Accidental landlords may not be a term you have heard before, but they are more common than you think. Read on to learn about accidental landlords, and what to do if you become one.
What are Accidental Landlords?
An accidental landlord is, simply put, someone who becomes a landlord accidentally. This can be through inheriting property when a loved one passes away, owning an extra property to rent, or many other situations.
Meet With a Property Management Company
A property management company is a fantastic resource to help you navigate the world of property ownership, especially if you are new. They can give you all the resources you need to be successful.
If you want to be hands-off but still make money from your property, a property management company is the way to go. They can handle things like lease agreements, tenant screenings, and maintenance obligations so you don't have to.
Sometimes a third party can help if you don't live in the area. For instance, if you inherited a property from a deceased relative who lives further away, you will not have to move there to manage your new investment.
Decide Whether to Sell
You may not be enthusiastic about becoming an accidental landlord. In that case, you should think about selling the property.
Selling is a good option if you don't have the resources to manage your investment, or if you simply need the extra cash and don't want to wait for passive income from renting it out.
Recruit a good real estate agent to help expedite the process. You will be able to get the maximum amount possible and turn a profit, even if the house still has a mortgage.
Know Your Maintenance Obligations
If you decide to rent out your investment property, then you should be aware of maintenance. Try to keep a seasonal maintenance schedule and check on things regularly to avoid costly issues down the line.
Make a maintenance checklist that you can refer to in case you need assistance. You can check off when a task is complete and schedule the next time you need to perform it.
Buy a Good Insurance Policy
If you don't want to deal with financial hassles, you need to buy the best landlord insurance. Landlord insurance will protect you from things like property damage, liability, and when tenants default on rent.
Make sure to calculate your insurance premiums into your monthly budget.
Don't Be an Underprepared Accidental Landlord
Accidental landlords don't have to feel scared or overwhelmed. With this guide, you can successfully navigate property management, even if it comes with unexpected loss.
A property management company like PMI San Jose can be the perfect partner in navigating accidental property ownership. We are ready to assist you with all of your property management needs.
Ready to get started with property management? Take a look around our website for more info, or contact us today.
