Accidental landlords are homeowners who rent out a property due to circumstances like inheritance, relocation, or difficulty selling. In Miami's fast-paced market with strict regulations, many find themselves in this role unexpectedly. To overcome landlord challenges, you need to learn essential tips.
According to a report by CNBC, around 20% of tenants living in the U.S. are behind on their rent. This is just one of the challenges you may face as a new landlord.
Let's discuss six tips for accidental landlords in Miami to help you succeed in your new role.
How Can You Be an Accidental Landlord in Miami?
Being an accidental landlord means that you've found yourself owning a rental property due to unforeseeable circumstances. Various circumstances may lead you to rent out a home unexpectedly, including the following:
- Inheriting a home from a deceased family member and deciding not to sell it
- Moving to a different part of the country and renting out your current home
- Economic challenges may lead to your being unable to pay the mortgage
Although owning rental property comes with extra income, it may also bring potential risks and responsibilities that you hadn't anticipated.
What Are the Basic Responsibilities of Accidental Landlords?
To ease your journey as an accidental landlord, there are various responsibilities that you should adhere to. Some of these landlord responsibilities in Miami include the following:
- Ensuring the property is compliant and safe
- Handling any repairs or maintenance work promptly
- Communicating clearly with tenants and maintaining good relationships
- Respecting the rights of your renters
Tips for Accidental Landlords in Miami
It may feel overwhelming to own property that you need to rent out suddenly. Below is an accidental landlord guide to help you navigate this new role:
1. Set Competitive Rental Prices
Pricing your rental property competitively can attract high-quality tenants and ensure profitability. Look at rental comparables in your area that match the amenities and size of your property. This action will help you estimate the average rental rates in your location.
If your property has unique features such as updated appliances or a swimming pool, you'll need to price it a little higher. Ensure the rate you set matches what tenants around the area are willing to pay.
2. Prepare the Property for Renting
Check for any repairs or maintenance that need to be done on the house and take care of them before renting it out. Some of the maintenance work you can do before renting out your real estate investment includes the following:
- Checking for pest infestations, leaks, or structural problems
- Upgrading the bathrooms and kitchen
- Tidying up the outdoor areas to maintain curb appeal
3. Screen Your Tenants
One of the Miami real estate insights you should take note of is finding out the kind of tenants you'll be renting your property to. Come up with clear criteria to screen your potential tenants. In your criteria, include factors like references, income, rental, and credit history.
Reach out to their previous landlords for information on how these tenants maintained their previous rental homes. Also, contact their past and present employers to verify their employment.
4. Keep Clear Records
Among the most crucial landlord advice you can get is to keep thorough and clear accounting records. This action allows you to track tax deductions, maintenance costs, expenses, and income. Keeping records also provides a clear image of the profitability of your property.
Additionally, your bookkeeping process will be simplified when the tax season approaches. Most rental property expenses, including maintenance and repairs, may be deductible.
5. Prepare for Vacancies
The time between a tenant moving out and finding a new renter varies. It may leave you with no rental income for months or weeks. It's recommended to have an emergency fund to help you cover utilities and mortgage payments during this gap.
Market your property on online platforms to attract new tenants fast.
6. Hire a Property Manager
Managing a real estate investment, especially as an accidental landlord, can be stressful and time-consuming. At Rovira Property Management, we simplify your rental experience by handling all operations from rent collection, maintenance, to tenant screening.
We're also well-versed in the Miami laws about real estate. This protects you from legal issues and ensures your rental property stays compliant.
Frequently Asked Questions
Should You Get a Rental License Before Renting Out Your Property in Miami?
Yes, you'll need a Business Tax Receipt before renting out your real estate investment for more than six months. If you intend to use the property for short-term rentals, the law in Miami requires you to get a Certificate of Use and a Business Tax Receipt.
What's the First Thing You Should Do as an Accidental Landlord?
You need to understand the rental laws in Miami, develop a clear lease agreement, and set a competitive rate before advertising your property for rent. You can consult an expert property management company to help you navigate this process.
Who Is Responsible for Repairs and Maintenance in Your Property?
According to the Miami law, landlords should maintain their properties and ensure they are safe and in a habitable condition. Renters should take care of the rental property and keep it clean.
Is it Worth it to Hire a Property Manager?
If you stay far from your property or have a very busy schedule, it's advisable to hire a property manager to help you run your real estate investment. These experts can take care of the daily operations, ensure tenant satisfaction, and legal compliance.
What Should You Do If a Tenant Refuses to Pay Rent?
If a tenant fails to pay rent on time, you should give them a three-day notice. This notice includes the exact amount the renter needs to pay and a clear indication that they have three days to pay or vacate your property.
Get Expert Property Management Advice to Thrive in Real Estate
Accidental landlords in Miami go through various challenges as they try to navigate the new normal. With the tips above, you can be a successful landlord and maximize your rental income.
At Rovira Property Management, we assist property owners across South Florida and Miami in enjoying peace of mind by providing expert rental property management. We also prioritize personalized service and excellent communication to maximize your investment.
Contact us today and discover our expert property management services.
