A survey found that over 75% of parents are willing their children their homes. The same survey found that almost 70% of these heirs are selling the inheritance instead of keeping it.
So, where does that leave the remaining (approximate) 30%? Some people may live in these residences, while others may rent them out.
These people are accidental landlords, they weren't prepared or interested in the property and decided to rent it out. Ending up with a property out of the blue can be a lot to deal with, so how do you handle it?
We've prepared a guide to help accidental landlords in McAllen, TX, cope with the stress of property maintenance. Read on to learn how to manage your property the right way.
How Do You Become an Accidental Landlord?
Home inheritance isn't the only way to become an accidental landlord. Some people find selling their homes too expensive, so they bring in a renter. This scenario often happens when the homeowner is paying a mortgage.
To clarify, you can sell a mortgaged home. But it's difficult and pricey if you owe more on the mortgage than you have in home equity. Another way to stumble into accidental landlording is if you see a change in your finances.
For example, you or a member of your household lost your job. You might bring in a renter to increase your income.
What Do Accidental Landlords Do?
An accidental landlord's duties aren't different from rental property owners who choose their position. Their first duty is tenant screening. They must find good tenants who aren't disruptive and will pay on time.
Here's what some of what the tenant screening should cover:
- Background check
- Credit score
- Rental history
- Financial history
- Proof they can pay rent
Rent collection is also part of an accidental landlord's job. Not only does this income help bolster finances, but they must go back into the property. Rental income will cover maintenance costs, among other necessities.
Accidental landlords are also responsible for rental property maintenance. Part of the landlord/tenant relationship is ensuring everything works and that you make timely repairs when need be.
Tenants are more liable to renew their lease if everything remains in working order. The lease agreement must be clear and easy to understand.
Outline each party's responsibilities and specify important terms. The lease should explain maintenance responsibilities, rental prices, accepted payment methods, etc.
Include penalties for ignoring lease terms and eviction protocols. The final thing an accidental landlord must know is landlord-tenant laws. For example, you cannot evict a tenant in Texas without cause.
Have You Stumbled Into Landlording?
All the accidental landlords out there are in a tough, stressful position. Knowing that you have to do tenant screening and rental property maintenance isn't the same as understanding how.
Luckily, our team at PMI Rio Grande Valley is willing to help. PMI RGV is a full-service property management company with over 20 years of management and real estate experience.
Contact us when you're ready to start. We'll help you maximize the most profit from your McAllen, TX, rental property.
