Accidental landlords are an increasing phenomenon across the country. That's because many homeowners secured excellent mortgage interest rates during the pandemic and are reluctant to sell these homes when they have to move.
Other reasons for becoming an accidental landlord include inheriting an unwanted property or a temporary work relocation.
Regardless of your reasons for becoming a landlord, if you find yourself in this situation, you likely need a little expert help to succeed. Keep reading for some advice on how to thrive as a landlord in Frisco, TX.
1. Learn About Local Real Estate Markets
Get to know what's happening in your local real estate environment. Find out how much demand there is for rentals, what type of people would be willing to rent a home like yours, and how much they're prepared to pay.
There are no laws controlling how much you can charge for rent in Texas, but you shouldn't overprice your rental unit. Too high rents will drive away tenants, but you'll be out of pocket if you price your property too low.
The best way to calculate a fair amount is with a rental analysis. This process involves researching how much rent landlords are charging for similar properties in your area.
2. Carry out Thorough Tenant Background Checks
The only thing worse than a vacant rental unit is a bad tenant. These people don't pay their rent on time, if at all, and cause costly damage to your property. They may even carry out illegal activities in your rental home.
Careful tenant screening, according to the Fair Housing Act, is the best way to find good tenants for rental units.
3. Prepare for Unexpected Expenses
One of the best rental income tips is to set aside some money every month toward routine maintenance and unexpected repairs. Every property needs ongoing maintenance to preserve its value and encourage lease renewals.
Remember, your household insurance is unlikely to cover tenant-related issues. Always take out landlord insurance to help you cope with unforeseen expenses.
4. Engage in Clear-Cut Communications
Miscommunication is often a huge source of conflict between landlords and tenants. Go through your lease agreement carefully with your tenant and make sure they understand every clause.
Throughout their tenancy, it's important to communicate your expectations, such as rent due dates. You should also give them at least 24 hours' notice before entering the property to carry out inspections or property maintenance.
A tenant portal can prove most helpful for these communications.
5. Hire a Property Manager
A property manager is an excellent source of information on all things related to real estate. They can offer landlord insurance advice and property maintenance tips, act as a tenant screening guide, and help you understand the real estate market.
More Tips for Accidental Landlords
Hiring a property manager is the first step for those who are new to managing tenants, property maintenance, and lease agreements.
PMI Frisco is the go-to company for accidental landlords in this part of the world. We have abundant expertise and experience with property management in Frisco and are backed by a leading national franchise.
We offer a full range of services to keep your rental property profitable. Get the peace of mind you need today.
