It seems strange to imagine your life will take an unpredictable direction. But it happens. Sometimes, it's small, like missing a bus to take you to work.
Sometimes, it's a big thing, like receiving the deeds to a rental property you didn't expect. But this is no time to panic. It can be a profitable and exciting adventure. Here's how accidental landlords can make their situation work for them.
Get to Know the Law in Arkansas
Laws and regulations will shape your experience as a landlord, so take the time to familiarise yourself with the most important ones. That includes state laws on tenant rights, eviction processes, and zoning regulations.
Knowledge of legal matters will stop you from encountering expensive problems, fines, or litigation. So it's a wise way to protect your investment.
Set the Most Competitive Rate
A competitive rental rate doesn't mean the lowest one on the market. You need a balance of a rate that attracts many inquiries and gives you a healthy profit. The best way to do that is to start with some research.
Look at what other similar rentals are going for in your area.
Do a Comprehensive Tenant Screening Check
A bad tenant can be worse than no tenant for your property. They risk damage to your rental and the time, cost, and hassle of an eviction process. Mitigate this by doing a comprehensive screening process.
Take the time to check every detail about an applicant, including a credit check, criminal background check, and references from previous landlords.
Keep on Top of Maintenance
Landlord responsibilities include maintaining a property and keeping it in excellent condition. But it is money well spent. It means a happier tenant and reduces the risk of breakdowns that could come with costly repairs.
It also helps protect the value of your property. So, schedule inspections regularly, keep up with minor repairs, and secure reliable contractors.
Consider Delegating the Small Stuff
Plenty of everyday tasks keep you busy with your rental property. But it's not always a good use of time for unexpected landlords. And real estate experts can do it more efficiently.
Consider hiring a professional property team. That way, you have someone 24/7 to look after your property, and you can focus on other priorities.
Keep a Contingency Budget for Emergencies
Anything can go wrong in any property. When you can't avoid a problem, it's best to find a way to manage it.
That's why a contingency budget is so important. It's a safety net for your real estate investment, providing a cushion of funds so you don't need to compromise or worry if your property experiences an emergency.
Accidental Landlords: Making the Most of the Situation
The first instinct of accidental landlords might be a feeling close to panic. But you can make it work. And with the right strategy, you can make it a financial success. Use these tips to help you.
Allred Properties has operated in Fayetteville, Arkansas, for 25 years, and no one else knows the market like we do. If you want to put your rental in safe hands, learn more about our rental property management services for landlords.