Picture this you're ready to put your home on the market and turn a profit. But, time goes on and no one is interested in buying the house, you start to panic.
When you buy a home, you do so with the understanding that you're making an investment in your future. However, this purchase can end in you becoming one of the many accidental landlords without realizing it.
With the current state of the job market, many people might find themselves becoming landlords, which they may never have thought of before. Read on below to learn some useful accidental landlord tips you're not going to want to miss out on.
What is an Accidental Landlord?
Before we get into these tips for accidental landlords, we will define what it is. Becoming an accidental landlord is when you place your home up for sale but can't find someone to buy it.
Therefore, your only option is to rent it out to cover the mortgage and other fees. Another way you can become an accidental landlord is when there are circumstances that arise in your life in which you will need to change your home quickly.
For example, taking a job in another place or having a baby that makes your current home too small to continue living in. With a better understanding of what an accidental landlord is, here are tips you can use once you become one.
1. Understand the Law
When you become a Wilmington accidental landlord, you need to ensure you stop for a moment and take time to learn the law. Knowing what your local and state laws are is beneficial moving forward when making decisions and will help you to remain within compliance and do the right things.
Knowing the law will also help you to make changes to the rent and other fees you wish to implement without breaking the law. The sooner you learn the law, the better off you will be.
2. Screen Tenants Carefully
You need to take your time to carefully screen tenants. We understand you want to move someone in as soon as possible to begin paying rent, but if you're not careful, you could end up approving a tenant with several past red flags.
Part of the screening process should include performing a background check to better understand the potential tenants' past rental history. Without a background check you could find yourself in a tricky situation.
So remember, take your time to find the right tenant because it will pay off in the long run.
3. Always Use a Formal Contract
One thing remains the same, and it's that you should always have a contract with tenants that are renting your home. This can be used in the future in case you need to take the tenant to court and there's something outlined in the contract that the tenant isn't upholding.
Having a contract serves as a protection measure for you and is the agreement that both parties have signed and will adhere to while the tenant is living in your property.
Becoming Accidental Landlords: What You Didn't Know You Needed to Know
When you join the league of accidental landlords, there are several things to know ahead of time. We've provided you with three tips that will help you get off on the right foot.
Schedule a free consultation with PMI Wilmington for help and resources today.