When you think of the term "landlord," you might picture a wealthy entrepreneur with an extensive portfolio of properties. However, according to the Pew Research Center, the reality is quite different-around 70% of landlords own just one or two properties.
Many of these property owners are accidental landlords, who inherit property from a relative or unexpectedly find themselves with a rental unit due to life changes. These unsuspecting landlords often face unique challenges, from legal pitfalls to maintenance issues. For those unprepared, being a landlord can quickly turn into a nightmare.
Are you an accidental landlord looking for property management advice? Read on to discover 5 unexpected landlords tips.
1: Neglecting Property Maintenance
If you've inherited property in Orlando, you have valuable real estate with great income potential. However, Florida's climate can lead to common maintenance issues:
HVAC Strain: The hot, humid weather puts stress on your cooling system
Water Damage & Mold: High humidity can cause mold and structural issues
Pest Infestations: Warmth and moisture attract termites, cockroaches, and ants
Regular inspections and preventative maintenance are key. Catching issues early, especially mold, can prevent costly damage. Always be proactive and protect your investment.
2: Not Screening Your Tenants
Finding the right tenants means consistent occupancy and timely rent payments. Good tenants also help maintain your property.
On the other hand, some renters cause damage that far exceeds the security deposit. This often happens when landlords rely on gut feelings instead of thorough formal tenant screening.
Don't take risks-use a professional screening service to get the facts about all applicants.
3: Not Knowing the Law
As a landlord, you must understand local and federal property laws. Inexperienced accidental landlords often overlook their legal responsibilities, but ignorance is no excuse.
Non-compliance can result in hefty fines that may wipe out your returns. Unless you have legal training, consult a property management company for advice.
4: Setting Unrealistic Rent
Overpricing your rental can leave your property vacant, especially if there's a lot of competition in the market. Without renters, you lose income, but expenses like maintenance will keep piling up.
Always research the local market and set competitive rates. Once you've signed a lease, avoid frequent rent increases, as they can push good tenants away.
5: Security Deposit Errors
Accidental landlords often mishandle security deposits. In Florida, landlords must disclose where deposits are held and return them within the legal timeframe. According to the Flaxman Law Group, this ranges from 15-60 days.
Failure to comply can lead to tenant disputes and fines. Another common mistake is not documenting the property's condition before tenants move in. Without evidence, it's difficult to prove tenant-caused damage.
Accidental Landlords Need Property Management Expertise
As this guide shows, managing rental property is full of potential pitfalls. But, Accidental landlords often benefit from working with an experienced property management company.
At Bahia Property Management, we're property management experts dedicated to guiding you through the complexities of Florida real estate. The PMI brand has decades of experience, and we're here to help with your property management troubles. Contact us today to see how we can help you manage your property with confidence and peace of mind.
