Most people invest in rental properties to make a reliable income from them, but for some, becoming a landlord happens unexpectedly.
This can be a very good thing, but if you're not prepared, you're going to face some major challenges. Taking the right approach can make a huge difference, so it's important to act quickly and take the right steps. This will help minimize any difficulties and allow you to start making a good rental income.
In this guide, we'll go over some key property management tips for accidental landlords in Auburn Hills, MI. Let's jump in.
1. Figure Out Your Mortgage
One of the first things you need to do is let your mortgage provider know about the property. You'll need them to grant you consent to rent so you can start looking for renters.
There may be other options depending on your current situation, so you should discuss this with your lender. Your new mortgage rate could be different and there might be additional fees, so you want to figure this out as early as possible.
2. Get Landlord Insurance
You aren't legally required to have landlord insurance, but it's a very good idea. It will protect you financially if there's any property damage, loss of rent, liability claims, or other issues with your tenants.
You may also want contents insurance if your rental property is furnished. If anything bad happens, you'll be very glad that you have a suitable insurance policy in place.
3. Carry Out Safety Checks
Landlord responsibilities involve making sure the property meets the right safety standards. This includes things like conducting Portable Appliance Testing (PAT testing), obtaining a gas safety certificate and an Electrical Installation Condition Report (EICR), and installing/testing smoke and carbon monoxide alarms.
These are all required by law, so you can't skip this step. It will take some time, but it's vital to do this before you make your property available to rent.
4. Determine the Property's Value
One of the main purposes of all landlord strategies is to maximize profits. You can only do this if you're charging the right amount for rent. Property valuation will help you determine a suitable amount.
A property manager can help you get an accurate idea of the value of your property. They'll use their experience alongside their knowledge of the local market to determine the value of yours. They can then tell you how much you should be charging for rent.
5. Hire a Property Manager
As an accidental landlord, you probably don't have much (if any) experience. A professional property manager can give invaluable real estate guidance to help you with your new responsibilities. They can take on various duties to make things much easier for you so you don't have to worry about the stresses of being a landlord.
Property Management for Accidental Landlords
Accidental landlords often have a hard time with their properties. A property manager can offer expert assistance so you can make the most of your new asset.
PMI Great Lakes is a full-service real estate asset management company that serves Auburn Hills, MI, and the surrounding communities. We leverage years of experience and the latest technology to provide industry-leading services. Check out our property management page to learn more.
