If you find yourself suddenly owning rental property in Daytona, congratulations! You own property in one of the hottest housing markets in the country. Now, you need to make the most of your new opportunity.
Accidental landlords need to know these five facts about their new property ownership.
1. Protect Yourself With Insurance
Your first step as a landlord is to purchase insurance. Protect yourself and your new property by buying a few different insurance policies. Property insurance protects you from loss if the property experiences damage.
Liability insurance protects you when you are liable for someone else's injury or damage. That way, you don't have to pay for these costs out of pocket.
Finally, consider purchasing loss of income insurance. If you decide to continue being a landlord, this insurance will help you protect your investment. You can make an insurance claim if the property cannot generate rental income.
2. Learn the Law
As a first time landlord, you need to learn the law that now applies to you. Failing to know these laws can get you in trouble and face tenant lawsuits. It can also result in hefty fines for not abiding by them.
Start by reviewing the rights and duties of landlords and tenants. It can also help to speak with a lawyer. They can review your specific situation. That way, you can get guidance on the laws that directly apply to you.
3. Establish Tenant Communication
As soon as possible, introduce yourself to the tenant. They will likely feel stressed about the change in property ownership, especially if it is unexpected. Communicate your plan for the property to your tenant.
If you decide to be a landlord, this creates a solid first step to positive tenant relations. If you choose to sell, your tenant deserves to know. If you decide to move into the house, your tenant would need notice to move out.
4. Create a Property Maintenance Plan
Whatever you decide to do with your new real estate, you must take care of it. Routine maintenance is a must for protecting the condition and property value.
- Lawn care and landscaping
- General contractor
- Electrician
- Plumber
Start sourcing vendors now to have a contact ready when your new property needs servicing.
5. Get Management Help
Becoming a landlord can feel overwhelming and time-consuming. As an accidental landlord, you may not have the ability and capacity to fulfill your landlord duties. Not having the knowledge, time, or skill to be a landlord is a sign that you need help.
Consider hiring a property management company. A property manager has experience being a landlord. They can communicate with tenants, manage vendors, and provide monthly accounting statements.
6. Brush Up on Taxes
As a new property owner, you have new tax liabilities. However, as a landlord, you also have new potential tax benefits. Speak with a tax professional to learn about your new tax situation.
Accidental Landlords Have an Opportunity
Accidental landlords find themselves in an unexpected position that offers substantial profit opportunities. They need to take these key steps to make the most of their new landlord role. PMI Daytona Flagler can help landlords communicate with tenants, create a maintenance plan, and manage rentals.
Turn your new landlord role into a profitable venture by contacting PMI Daytona Flaglar.
