Connecticut consistently has some of the most dynamic real estate markets in the country. That is great for investors. However, not everyone who is a landlord intends to be.
Due to unforeseen circumstances, like inheriting property, people unexpectedly find themselves in the position of a landlord. Often, they have no idea where to start.
This article lays out some property management tips for "accidental landlords." Keep reading to find out what to do should you find yourself in this situation in the Niantic property market.
What Is an Accidental Landlord?
An accidental landlord is someone who unexpectedly finds themselves managing a rental property. This is often due to inheritance, but it could be a result of circumstances that force this upon them.
Some examples include the inability or unwillingness to sell property during market downturns. Relocating for work but wishing to retain a home is another common scenario. A final typical situation is deciding to cohabitate with a partner and not wanting to sell one's home.
Tips for Accidental Landlords
Fortunately, there are some basic steps accidental landlords can take to make things run smoothly. Here are the main ones to consider.
Understand Legal Requirements
One of the most important things someone can do when they become a landlord is to understand the law. Every state has unique requirements that govern the landlord-tenant relationship.
These extend to everything from maintaining building codes to the amount of notice you must give before entering the property for inspections. Some laws regulate how much landlords can charge in security deposits. Others lay out eviction processes and requirements.
Failure to comply with these laws could lead to fines and lawsuits. Staying on top of federal, state, and local requirements is vital for a new landlord.
Get Property Insurance
One of the first things you should do as an accidental landlord is to purchase property insurance. Note that this is distinct from homeowners insurance policies.
Landlord insurance for rental properties covers damage done to the home or grounds. This includes damage from tenants, weather-related events, or vandalism. It also provides liability coverage, including legal fees and settlements, in the event you are sued by tenants.
Communicate With Residents
One of the easiest yet most impactful things you can do as a new landlord is to communicate with tenants. Respond to maintenance or repair requests promptly. Be sure to alert residents of impending deadlines, such as lease renewals. Maintaining a clear line of communication will make everyone happier.
Hire a Management Company
If any of the tasks above seem overwhelming, consider outsourcing landlord responsibilities. A reputable property management company can take on these tasks and execute them with efficiency and precision. This lets you retain all of the advantages of retaining a property while foregoing the obligations of managing it.
Learn More About Managing Rentals
With a little patience and the tips for accidental landlords above, you can get your Niantic real estate investment headed in the right direction. An experienced property management company can give you further real estate advice on the best strategies based on your unique circumstances.
PMI East Lyme is a full-service property management company serving East Lyme and the surrounding areas. We offer a range of services, including marketing, tenant screening, rent collection, maintenance, and more. Contact us today to learn more.
