Did you know that more people are becoming accidental landlords than ever before? Finding yourself in this scenario can be surprising, but it doesn't have to be a burden. If you play your cards right, it could be the financial blessing you never saw coming.
Still, the unexpected nature of being an accidental landlord leaves you without that crucial preparatory run-up most other landlords get. That's why we've got these five essential tips to help make setting up and running your business much smoother.
1. Open a Separate Business Banking Account
Opening a separate bank account for your rental income and business expenses is an excellent way of making your accounting easier. If you're running an LLC, you have to open the account under the LLC's name, even if you're the sole shareholder and director.
California law doesn't tell landlords how to store security deposits. However, keeping deposits in their own accounts always minimizes conflict.
2. Get a Tenant Portal (At Least)
Tenant portals are marvelous modern tools that allow landlords and tenants quicker access to vital information and services. Tenants can pay and make maintenance requests through the tenant portal, which saves a lot of admin time and leaves a simple and organized paper trail. This is great for accounting and tenant-landlord relationship reasons.
3. Get on Good Terms With Your Tenants
If you're one of those accidental landlords who inherited a property with tenants already living there, meet with them ASAP. Building a solid working relationship with tenants may convince them to stay much longer, reducing vacancy losses.
First-time landlords should seriously consider using tenant screening services.
4. Explore and Learn the Law
Every duty and right that a landlord or a tenant is found either in the law of lease (a sub-species of contract) or property law. Together, these areas of law regulate everything from who's on the hook for maintenance to how much security deposit you can charge.
Most attorneys can help you navigate the contractual and property laws from a substantive perspective. However, not all of them deal with the practical business side of property management all too often. A good property manager can give you all the legal landlord advice you need, leaving attorneys as a last resort when you have complicated problems.
5. Connect With Other Successful Accidental Landlords
Learning how to survive from someone who's been in the same boat can fast-track your success. You can connect with other accidental landlords by referral through your property manager. You can also go to networking events to learn from presenters and to meet other landlords in simial situations.
Turn Your Surprise Into a Thriving Enterprise
Accidental landlords in Alameda County have nothing to fear; there are plenty of resources to help them become successful. All that's needed is a rental property and a business account. From there, property managers can help set up tenant portals, screen tenants, and connect like-minded landlords.
Our property management firm can also help new landlords navigate legalities. PMI Alameda County uses technology and expertise to help manage real estate assets and grow rental income like no other. Get a partner you can trust with your burgeoning real estate portfolio by contacting us today.
