Almost 20% of all renters in the US are behind on rent.
This is just one of the problems that landlords can face. While it can be very rewarding, there are also some challenges that can make things very difficult. For accidental landlords, things can often be even more confusing, so it's ideal to get a good idea of how you should be handling things.
For some key tips for accidental San Diego landlords, keep reading.
Getting proper insurance is crucial. This will cover you for any damages that occur, so not having it means taking a big risk. You might already have a homeowner's policy, so you'll need to change this to landlord insurance.
Sort Your Taxes
It's important to pay the correct taxes for any income that your property generates. You might want to tackle this yourself, but it's highly recommended to hire an accountant who knows what they're doing.
If this isn't within your budget, you could use accounting software. It might not be as good as having an actual accountant, but it can still be helpful and is far more cost-effective.
Find a Property Manager
As an accidental landlord, you probably don't know much about property management. One of the best things you can do is hire a property manager to take care of many difficult tasks such as tenant placement, rent collection, and general maintenance. This can be even more crucial for a larger property.
If you start managing a property yourself, it could get in the way of other everyday activities. IPA (Income Property Advisors) has plenty of experience with property management, so we could manage whatever property you have, allowing you to carry on with your life as usual while still generating an income.
Consider Tenant Safety
When you own a San Diego rental property, one of the most important things you need to do is ensure it's safe for tenants. There are various things you can do to improve safety such as:
- Install CCTV cameras
- Install an automatic gate
- Install an alarm system
- Perform a security audit
All of these will help protect the property as well as those living in it.
Have Airtight Lease Agreements
Before you rent a property out you should ensure all lease agreements are secure. Disagreements with tenants can occur, so you can protect yourself by having everything clearly laid out in the lease agreement before they move in. Some essential and basic things are the lease period and the cost of the rent.
Making Things Easier for Accidental Landlords
Accidental landlords can struggle, especially when getting started. There's a lot to consider, and it could interfere with your day-to-day life. Haring a property manager can be incredibly helpful.
IPA offers property management services throughout San Diego. If you've become an accidental property manager and want to make things much easier for yourself, we can help. Click here to learn more about our property management services today.