Did you ever think you'd wind up here? In life, that is.
If we're honest, most of us are in a spot in life that we never could've predicted. We don't mean that in a bad way; surprises can often be amazing.
And, many times, random circumstances leave us in a position that is even better than the plan we had for ourselves.
Whether your circumstances work for you or against you has a lot to do with how you handle them. The same is true for accidental landlords.
In this article, we're going to discuss what an accidental landlord is, how one becomes an accidental landlord, and how to best handle your newfound responsibility.
So, stick around! We've got a lot to cover.
What Is An Accidental Landlord?
There are basically two ways you can come to own rental property.
The first is, you intentionally set out to buy rental units like a real estate investor. The second option is you become a landlord by accident.
The most common way people become a landlord by accident is through the inheritance of family property. Many times people inherit property from a family member that they didn't plan on getting. Either they didn't even know their family member owned this property, or they knew about it but didn't plan on inheriting it.
Either way, it's their responsibility now, and, chances are, they don't have any real plan for how to manage it.
Other ways you can become an accidental landlord are through a divorce or separation or a change in financial circumstances.
Responsibility of Accidental Landlords
Let's say you've inherited a property through the death of a relative. Now, your accidental investing journey begins.
Unless you have some experience in the real estate space, you probably are unaware of everything that goes into being a landlord and managing rental property.
You are now responsible for finding tenants, screening tenants, scheduling repairs and maintenance of the property, collecting rent, managing lease paperwork, and handling evictions.
See? There's a lot more to owning rental property than most people think. If you find yourself accidentally in possession of a rental property, hiring a professional property management company to handle your new rental property is going to be your best bet.
It will cost you a fee up-front for your new property manager to place a tenant in the property. After that, your property management team will get a percentage of the monthly rent for as long as you work with them.
It's money well-spent if you've never invested in property before. And, getting started on the right foot can turn your inherited property from a nightmare into an investment opportunity.
Renting Out A Property Done Right
If you've recently found yourself in possession of an inherited property, let us help. The team at Orlando Property Management can answer any questions about what accidental landlords may face.
If you're set on managing the property yourself, visit our blog. We have tons of resources to help you be a better landlord and operate your rental property headache-free.
If you'd like to talk about working with us, and having us manage your new asset, give us a call anytime. Even if we don't end up working together, we are happy to provide feedback and education to our potential clients.
We look forward to building a relationship with you and doing all that we can to help you cash in on this new "curveball" life has thrown you.