5 Tips for Accidental Landlords in Duluth, Minnesota

5 Tips for Accidental Landlords in Duluth, Minnesota

According to MSN, the soaring mortgage rates create "accidental landlords" because homeowners want to keep their past cheap deals.

Of all the types of landlords, the "accidental" one can be the trickiest, as there is so much you need to learn. Don't fear all the nuances; you must get up to speed.

Here are the top five considerations to help accidental landlords kick off life as real estate investors.

1. Get a Solid Lease Agreement

Of all the landlord tips you hear, this is at the top of the list because it will set a precedence for your experiences with your tenant. Do not allow a tenant to live in your rental property without an impenetrable lease agreement. It would help if you protect yourself legally and do that through a clear contract that addresses all topics.

As per the agreement, you should have details on how much the rent will be and the duration of the lease. There should be a clause about renewals, pets, etc.

No matter how small it may seem, it must be agreed upon to prevent misunderstandings and potential court cases later.

2. Safety For the Tenant

Renting out a property means considering the well-being of your tenants. The rental property must be safe. Consider installing an automatic gate.

Not only that, but surveillance cameras work well. If you have a security system, there are multiple intelligent technologies that you could add to it.

3. Insurance

If you used to live at the property that you are now renting, you will need to change the insurance policy. It no longer requires a homeowner's policy. Now you need a landlord's insurance policy.

This could mean wiping the slate clean and creating a whole new policy. You must take this step because it will cover you in case the tenants cause damage to your property.

4. Understanding How You Will Be Taxed

The property is now an investment. This means you are earning dollars from it. If you are currently doing your taxes, you may want to consider hiring an accountant moving forward who can help you uncover deductions.

It is essential to file taxes for your investment property correctly. You want to avoid creating issues with the IRS.

5. Find a Property Management Company to Help You

Another of the best landlord tips that will be a lifesaver is to seek the help of a property manager. If you have a large property, this is especially imperative.

As an accidental landlord, you still have your usual daily routine to take care of. You may work full-time, have a family to care for, etc. It can prove challenging to handle your current obligations and add one more.

Hiring a property management firm will offload tough stuff and relieve the stress of being a landlord. That is because a property manager can handle upkeep, maintenance, collecting rent, tackling complaints, filling vacancies, and more.

How Accidental Landlords Can Be Successful

It's a new journey in life, and while it can be scary, it will be rewarding if you understand these landlord tips. Accidental landlords can look forward to being profitable, especially when you have a property manager to help.

PMI Lakeshore uses state-of-the-art technology, providing landlords with real-time access to billing and maintenance requests. Sleep well at night, knowing your rental property is being taken care of. Reach out to PMI Lakeshore for a free rental analysis today!