Advice for accidental landlords

Becoming a landlord often involves meticulous planning and making a deliberate decision to enter the property rental market. But sometimes, circumstances turn you into an accidental landlord without having any plans in place. You might inherit a property, move for work or personal reasons and decide to rent out your home, or you might invest in a property without intending to become a hands-on rental manager. Whatever the case is, finding yourself as an ‘accidental landlord’ can be daunting. Here, we look at some crucial pieces of advice for accidental landlords to help you navigate your new responsibilities successfully and stress-free. 

Understand what is expected of you

First things first – you need to understand what is expected of you. Landlords are bound by specific legal requirements that vary depending on location. These might include safety regulations, tenancy laws, and tax obligations. So, it’s best to familiarise yourself with the following:

• Tenant rights and eviction rules: Knowing what you can and cannot do under the law is essential for managing your property and relationship with tenants effectively.
• Safety regulations: Ensure the property meets all local safety standards, including working smoke alarms, safe electrical systems, and secure locks.
• Landlord rental property insurance: Standard home insurance might not cover rental activities. Landlord rental property insurance can protect you against property damage, liability claims, and loss of rental income.

Set up proper financial management

The next thing you need to do is make sure that you set up financial management when becoming a landlord. Managing a property can have significant financial implications, including regular costs like maintenance, emergency repairs, and taxes. To stay organised:

• Keep thorough records: Maintain detailed records of all income and expenses related to your property. This will be crucial for tax purposes and for tracking the profitability of your rental property.
• Understand your taxes: Rental income is taxable, and you may be able to deduct expenses such as mortgage interest, property taxes, insurance, and maintenance. Consult with a tax professional to ensure you’re making the most of your situation.
• Plan for vacancies: Have a financial buffer to cover periods when your property might be vacant between tenancies.

Choose the right tenants

Choosing the right tenants is crucial for the success and ease of managing a rental property, especially as an accidental landlord. Good tenants can ensure steady, reliable income and maintain the property in good condition, reducing the costs and time associated with excessive repairs and maintenance. 

They are also likely to adhere to the terms of the lease, which minimises legal and financial issues related to late payments, property damage, or disputes. Also, responsible tenants contribute to a harmonious relationship with both you as the landlord and neighbours, creating a positive community environment. 

Tenants who are not carefully vetted can lead to continuous problems, including property neglect, frequent complaints from neighbours, and potential legal battles, all of which can be costly and time-consuming for you. So, investing time in thorough tenant screening processes is essential for fostering a profitable and stress-free rental experience.

To minimise the risk of choosing tenants who are not suitable for your property, you can do the following:

• Screen your tenants: Conduct thorough background checks that include credit scores, employment verification, and references from previous landlords.
• Meet potential tenants: If possible, meet tenants personally to get a sense of their reliability and compatibility with your rental property.

Maintain the property

Maintaining your property as a landlord is essential because a well-maintained property attracts and retains quality tenants who are likely to care for your property, too. This will ensure that you have longer tenancies and reduced vacancy rates. 

Regular maintenance also preserves and potentially increases the property’s value over time, making your property a more profitable long-term investment. Also, addressing repairs and issues promptly can prevent minor problems from escalating into major costly repairs down the line. 

From a legal perspective, you are required to provide a safe and habitable living space, and failing to do so can lead to legal consequences and damage to your reputation. 

Proactively maintaining your property helps in building a positive relationship with tenants, leading to smoother management experiences and cooperation, which are invaluable for successful property management. So, to help maintain your property, try the following:

• Regular inspections: Schedule routine inspections to catch and fix problems before they become serious. This also creates an environment where tenants know that there is a certain standard of care for your property. 
• Respond quickly to issues: Be proactive in addressing maintenance issues. This prevents minor problems from escalating, potentially costing more money in the long run.

Use professional help

If you are an accidental landlord, the whole process of managing your property may be a little daunting at first. Ask the professionals for help if this is the case. A professional property management company can handle everything from finding tenants to managing day-to-day operations so that the pressure is taken off you. 

Using professional property management companies will also give you the opportunity to learn about how to effectively manage your own property, opening up doors to potentially expanding your property portfolio. 

Communicate effectively with your tenants

As we mentioned before, good communication is the cornerstone of successful tenancies. Being accessible is crucial and you should ensure that your tenants know how to reach you in an emergency and understand the best ways to communicate for routine queries. 

It is equally important to set clear expectations from the start with your tenants so that they understand what their responsibilities are, including timely rent payments, caring for the property and how to report any issues. 

Consider your long-term goals

Finally, it’s best to think about what you want in the long term for your property. Whether it’s eventually selling it, living in it, or continuing to rent it out, your goals will dictate your approach to maintenance, tenant selection, and renovations. So, take the time to think about what you want out of owning and renting out your own property. 

Being an accidental landlord may come as a surprise, but it doesn’t have to be a negative experience. With the right preparation, knowledge, and professional assistance, it can be a rewarding venture that enhances your financial stability and broadens your property portfolio.

If you’re on the hunt for the best rental property insurance quotes, make sure you get in touch with your friendly team at CIA Landlords! Give us a call on 01788 818 670.