Some people become accidental landlords by inheriting a second home: others need to move for whatever reason and don't want to sell their current home.
Either way, with rental vacancies across the nation remaining low and demand at fever pitch, there's a good chance owning a rental property in Rhode Island could work out favorably for you. Chances are, you'll need a little help at the outset, though.
Read on for our best tips on how to succeed at being an accidental landlord in Woonsocket, RI.
Learn About Local Landlord Laws
It's vital to familiarize yourself with all Rhode Island's landlord-tenant laws at the outset. If you're a non-resident landlord, you must register with the city before advertising your rental home as available.
You should also take care to abide by the conditions of the Fair Housing Act during tenant screening and while managing tenant applications.
Get Insured
Regular homeowner's insurance isn't enough for rental properties. You should take out specialized landlord insurance, which offers additional coverage for rental property.
These policies usually provide cover for:
- Structural damage to the property
- Damage to your personal possessions
- Lost rental income due to property damage
- Legal fees and medical bills for injuries occuring on your property
Additional protective measures, like upgrading your home's weatherproofing and installing security systems, will help you enjoy lower insurance premiums.
Screen Every Tenant
Bad tenants can cause you to lose thousands of dollars. They disregard the terms of their lease agreements, may damage your property, and don't pay their rent on time, if ever.
You can avoid these unpleasant scenarios by with stringent tenant screening procedures for every prospective tenant. When you receive an application, you should start by checking the person's details.
Once you've verified these, you can dive a little deeper by looking into their:
- Criminal records
- Credit history
- Employment and income
- Landlord references
- Tenant history
Apart from the FHA, tenant background checks must also comply with the Fair Credit Reporting Act.
Surround Yourself With Experts
Managing a rental home is a multi-faceted undertaking that's daunting for the uninitiated. Rather, hire a team of professionals to assist you with some of these tasks.
You'll need an accountant to assist you with taxes, a bookkeeper to keep track of monthly transactions, and a lawyer to navigate any legal problems that could arise.
Building solid relationships with local contractors can help you streamline property maintenance and repairs. Alternatively, you should consider hiring a property management team as an all-in-one solution for your investment home.
When you hire a property management company, they have a group of in-house experts to assist you with many diverse tasks.
Every Accidental Landlord Needs a Property Manager
Hiring a team of expert property managers is the most effective way to maximize the ROI on your rental property investments.
PMI Ocean State offers a full range of services to help every accidental landlord thrive. We are backed by over 20 years of real estate experience and can assist you with everything from marketing to property maintenance.
Take your first step toward success by talking to one of our team members today.
