Landlords in Florida earn an average of $61,615 per year. That is not an insufficient amount for a side income, especially one you hadn't planned for. Even though it's a lucrative business, accidental landlords find the investment path challenging.
Due to the lack of interest, most accidental landlords make big financial mistakes. However, you can turn the investment into a profitable business with a bit of keenness.
If you have no idea where to start with property management, worry no more. This article aims to discuss seven helpful tips for accidental landlords.
1. Landlord Insurance
Accidental landlords may have a hard time treating their property as a business entity. However, it would help if you got a Florida landlord insurance policy.
The policy will protect you against heavy financial losses. Besides, failure to get the policy might land you in trouble with the law.
2. Gas Safety Policy
Now that you are an accidental landlord, you must prioritize the safety of your tenants. You'll need to follow gas safety regulations.
The law requires landlords to provide tenants with copies of gas safety certificates. To get the certification, you must outsource the services of a registered plumber. The gas safety certificate is valid for one year.
3. Leasing Consent
It's always advisable to inform your lender that you want to change the intent to lease your asset. Some lenders can give you the consent to let.
However, others might need you to change the mortgage terms to accommodate the new leasing terms.
4. Tax Policy
Most landlords have gone down due to tax evasion. Dealing with tax fraud can even drain your other streams of income.
To avoid all this trouble, you need to file for landlord taxes right from the start. It's advisable to outsource a tax accountant to help you file the taxes in time.
Besides, they will help you cut down on tax payments by advising on the legal loopholes you can take.
5. Lease Agreements
Some tenants can prove to be difficult for no apparent reason. Therefore, it’s always wise to agree on the tenancy terms and agreements at the start of the period.
By doing so, you will save yourself a lot of trouble in case of property damage or late rent arrears.
6. Hire A Property Manager
The majority of accidental landlords have their hands full with other tasks. Hiring a property manager is a good way to keep your investment without dealing with the stress of actively managing it.
7. Heighten Security
Your tenant should feel safe inside the apartment. Therefore, it's wise to heighten security.
You can choose to install surveillance devices like CCTVs. You'll have evidence of theft or any other misconduct.
Accidental Landlords Guide
You may not have planned for this investment path, but it's time to take ownership. The above accidental landlord tips are a good place to start.
Most accidental landlords hire property managers since they are not ready to manage their assets actively. Contact us for all your property management needs.