Key Takeaways
- Steady Income Potential: Setting the right rent and adding small upgrades can turn an unexpected rental into a reliable income stream.
- Vacancy Reduction: Careful tenant screening and offering perks help you avoid costly gaps between renters.
- Maximized Returns: Tax benefits and professional property management services can boost profits while reducing stress.
Have you suddenly found yourself in the role of a landlord and are wondering how to make the most of your new rental property? Becoming an accidental landlord is more common than you might think.
Maybe you inherited a home from a family member, had to relocate for work, or decided not to sell when the
market trends weren't right.
While the transition can feel overwhelming at first, the good news is that with the right approach, your situation can quickly become a profitable opportunity.
In this guide from
Peak Residential, Inc., we’ll walk you through practical steps and strategies to help you turn your property into a reliable source of income.
Rental Income Tips and Strategies For Accidental Landlords
Becoming a landlord by accident happens when you end up with a rental unexpectedly, like inheriting a home or keeping one after a move.
Here are some practical ways to get started:
Understanding Your New Opportunity
An accidental landlord is someone who ends up with a rental property unexpectedly, and with it comes the chance to create a steady stream of extra income.
Before you dive in, take a close look at your property’s condition—does it need small updates like a
fresh coat of exterior paint, a repaired door, or some yard work?
Considering what improvements are necessary will help you decide how to move forward. Think of it as opening a new chapter, where you get to shape the story of your rental and the opportunities it brings.
Setting the Right Rent Price
Look around to see what other seasoned or first-time landlords in your area are charging for rent. If your property is priced a bit lower than similar homes, you might consider adjusting it slightly to better match the market.
Even a small
rent increase can add up over time, giving you extra funds for things like a family trip or home improvements. To keep things smooth, make sure you provide tenants with proper notice before making any changes.
Checking local listings or talking with neighbors is a simple way to set a rental price that balances keeping your property occupied with boosting your income.
Making Your Property More Appealing
Add small upgrades to attract tenants, like fresh paint for $500 to $1,000 or energy-saving lights for $300 to $600. This can let you ask 10% more rent, maybe $200 extra a month on a $2,000 rent, adding $2,400 a year.
Focus on things like a bright living room or a tidy garden; these small touches can make a big difference. A weekend project with a friend can turn your home into a place tenants love.
Keeping Your Property Occupied
When a tenant moves out, it can cost you $1,500 to $2,000 if it sits empty for a month or two.
Check new tenants carefully, looking at their credit and ensuring they earn three times the rent, like $6,000 for a $2,000 rent.
Offer a perk, like a free month’s rent, to keep good ones around, saving you from lost income. A quick meet-and-greet can help you pick someone who’ll care for your place.
Considering Professional Help
Bringing in a property manager, who might take 8 to 10% of rent, $160 to $200 a month on a $2,000 rent, can save you time and handle repairs.
Peak Residential takes care of the daily tasks, like tenant calls and fixes, so you can enjoy your day while the rent keeps coming. It’s like having a teammate who lets you focus on fun, with the cost covered by the convenience.
Using Tax Benefits
You can save money on taxes by counting repairs, like $500 for a new lock, and a special deduction for your property’s value, about $7,273 a year for a $200,000 home over 27.5 years.
A tax pro can help you save $1,000 or more each year, putting more in your pocket for a new car or a family outing. It’s a smart way to boost your earnings.
Overcoming Common Challenges
Managing from far away can take too much time; Peak Residential can step in to handle it, saving you travel.
Sudden repairs, like $1,000 for a broken pipe, can surprise you; save 10% of rent, like $150 to $200, to be ready. Not knowing rules might lead to fines, maybe $1,000; spend a little time learning or get advice to stay safe. These steps keep you on track.
Planning for Growth
Start with one property to get comfortable, visit if you can, or use online pictures to stay connected with tenants. Talk to neighbors to hear what they enjoy; a quick chat can reveal local trends.
It’s like planting a seed; you nurture it, watch it grow, and enjoy the harvest, maybe a new bike or a dinner out, over time.
Conclusion
Accidental landlords can make good money by setting the right rent, sprucing up their place, and keeping it rented. Letting someone manage it and using tax tricks can add even more.
Peak Residential, Inc. is here to help you turn your surprise into a money-maker. Give them a call today to make your rental a success; let’s make this a happy ride!
