Have you suddenly found yourself with the coveted title of "landlord?"
While most people work their way to being a landlord by investing in rental property, some find themselves with the responsibility of overseeing a rental without any will or plan. This can happen when you, for example, decide to rent out a home you inherited.
It's an opportunity to earn extra income, but it's not always smooth sailing for accidental landlords. What should you do when you're in this situation?
Read on for accidental landlord advice.
Learn Landlord - Tenant Laws
You've become an accidental landlord but you're up to the task. You're excited about the prospect of finding a tenant and collecting monthly rental checks.
Well, don't get ahead of yourself. You first need to get familiar with landlord-tenant laws in Virginia. You have rights as a landlord, but so do tenants.
To be on the safe side of the law, your actions must not violate the rights of the tenant. For instance, the law requires you to maintain a reasonably safe and healthy environment in your rental property. If you don't know about this, you can easily start skimping on maintenance and repairs.
Another area you need to know regards security deposits. In Virginia, you can only charge up to a maximum of two months' rent as a tenant security deposit.
Accidental Landlords Must Know How to Screen a Tenant
There are good tenants, bad tenants, and tenants from hell. Having a bad tenant will only make your life as an accidental landlord difficult. Imagine chasing rent payments every other month or dealing with a tenant who has an obsession with playing loud music at night.
Mastering tenant screening is the only way to catch renters who are likely to become problem tenants. Look at their credit and rental history, verify their proof of income, and even dig into their criminal background. If you're not satisfied, you can ask for references and call them up.
Rental Property Bookkeeping
Whether you're an accidental landlord or not, you're now running a business that has revenues and expenses. Like any other business owner, you need to turn a profit.
Rental property bookkeeping is a vital skill you need to master if you're to succeed. Open a separate bank account for receiving rental payments, and keep a record of all the money you spend on repairs, maintenance, and other related expenses.
When the time to file tax returns comes, you'll be in a better position to make the most of landlord deductions.
Get Professional Rental Property Management
The best move accidental landlords in Richmond can make is to hire a local property management company. A full-service company will handle all your landlord duties, ensuring your life isn't disrupted by this new development of being a rental property owner.
In Richmond, VA, Renters Warehouse is the property management company of choice. With over eight years of experience and a focus on the local market, you can count on us to manage your new rental property and maximize your income.
Contact us for more information about our services.
