Due to rising interest rates, America has become home to countless accidental landlords.
Just two years ago, interest rates were around 2%, but they sit around 7% now. If you purchased a house over the last couple of years, this is likely a cause of major stress. Turning your property into a rental is one way to deal with it, but being an accidental landlord comes with its own stress.
Today, we'll give you 5 key tips for dealing with stress. If you never intended to become a landlord, you might not know where to begin. This post will show the right and wrong ways to manage your accidental property.
1. Screen Your Tenants
If you already find being a landlord stressful, having delinquent tenants will make it much worse. The only way to minimize the risk of having a tenant who can't pay rent or damages your property is to screen them.
Tenant screening should involve criminal background checks, credit checks, and references from previous landlords. The more due diligence you do on an applicant, the more likely you'll have long-term tenants that make your life easier.
2. Automate What You Can
There are certain landlord tasks that can be automated to simplify your day-to-day. For example, rent collection is something you can easily automate, so you're always paid on time each month.
3. Emergency Funds
One of the things you need to focus on as a landlord is your accounting. Keep a separate account for your rental property so you don't mix your personal funds with business profits.
The most stressful times arise when you need to make a major repair or go through an eviction. These things cost a lot of money, so it's important to set aside funds to cover emergencies.
4. Do Maintenance
Speaking of repairs, you can prevent large-scale repairs by performing regular maintenance on your rentals. It's no secret that rental properties go through more wear and tear than traditional single-family homes.
Schedule regular inspections for your important systems, like HVAC and plumbing. Act on tenant repair requests quickly. The longer you let issues fester, the more likely they'll become major expenses.
5. Hire Property Management
Being a landlord is a full-time job. And when you're an accidental landlord, there's a strong likelihood that you've already got a full-time job to attend to.
In these scenarios, it can be really helpful to outsource landlord duties to a qualified property manager. These are services that you pay for each month, and the property manager handles day-to-day operations for you. It takes the stress of being an accidental landlord away, leaving you with just the benefits.
Your Accidental Landlord Resource
Other types of landlords know what they're getting themselves into, but managing stress as an accidental landlord can be overwhelming. If you're feeling in over your head, hiring property management is a great way to remove the burden.
Residential Equity Management is Folsom's top option for residential property management services. We'll cover everything from tenant screening and rent collection to maintenance and accounting. Contact us today to discuss your needs and how we can make your life easier.