Each year, thousands of aspiring businesspeople purchase their very first investment property with the hopes of becoming a landlord. But you aren't one of them.
Whether you inherited a property unexpectedly or are having trouble selling your former home, you may not have meant to become a landlord. You're what's known as an accidental landlord.
But no matter the reason you end up with a vacant home on your hands, you need to know how to manage it. It all begins with this accidental landlord guide.
Research Kansas City Landlord Laws
Landlord Tenant Laws specify things you can and cannot do as a landlord. It's a good idea to familiarize yourself with these regulations so you don't end up in legal hot water.
Some rights Kansas landlords have include the right to inspections, evictions (with just cause), payment and security deposit collection, and reimbursement for damage to your property.
Some rights Kansas landlords do not have include the right to raise a tenant's rent in the middle of their lease term. However, this may not be the case if you write it into the initial lease agreement.
Talk to Your Insurance Company
Most accidental landlords have a typical homeowners insurance policy. Often referred to as an HO3, this insurance policy is different from the one you need as a landlord.
Rental dwelling or landlord insurance policies, or DP3s, are designed for landlords. They provide coverage in case the property you are renting out is damaged or destroyed in a fire.
Landlords can add additional coverage to a DP3 policy. For example, many landlords add on personal liability coverage. You may also want to consider additional flood and/or earthquake coverage.
Keep Track of Business Documents
Whether you become a landlord on accident or on purpose, you must treat renting out property as a business. That means there are some important things you need to keep track of.
For one, you'll have to start tracking your business income and expenses. Come tax time, having access to this information will streamline reporting and reduce your risk of getting audited.
Also, ensure you get everything in writing. Always enforce formal contracts and lease agreements to reduce your liabilities and protect your prospective tenants.
Hire a Property Manager
If all of these tasks sound too weird for you to take on alone, the good news is that you don't have to. A local property management company provides these services and more for accidental landlords.
Outsourcing property management tasks won't just save you time and stress. Property management firms can also make you more money, which you can use to invest in new rental properties or other business ventures.
Accidental Landlord? We Can Help
There's a lot to learn as a new landlord, from local landlord-tenant laws to keeping a record of your business's financials. Luckily, property management services can take these and many other landlord responsibilities off your plate.
Are you an accidental landlord? Overwhelmed with everything you need to do to keep your rental property running? PMI Station is a full-service property management company with nearly 20 years of experience serving landlords like you.
Contact PMI Station today to learn how we can help make your life easier.
