A Quick Guide to Accidental Landlords in North Carolina

A Quick Guide to Accidental Landlords in North Carolina

Investment properties aren't always intentional.

People acquire property in many ways. Whether you've inherited a property from a relative or purchased one that you can't live in, you may be better off renting it out. 

Being an accidental landlord is all about making the best of a situation you never intended for. That said, accidental landlords often don't have the time or tools to deal with their rental properties like a property investor would.

If you've become an accidental landlord and need guidance, you've come to the right place. In this post, we're going to help you maximize profits on your new rental property. Keep reading and you'll see that just because you didn't intend on being a landlord, it doesn't mean that you can't do a good job.

Consent to Rent

One thing that you'll have to do if you're turning your property into a rental is to speak to your mortgage lender. You can't just jump right into renting out your property because your mortgage terms may have to change.

Inform them of your intent to rent out your property and they'll tell you whether or not your interest rates will go up. They may want to know how much you're planning to charge for rent to compare it to your new mortgage payments. They may also inquire about your new living situation.

All of this is to ensure that you can afford your mortgage payments. So long as everything is alright financially, you'll be able to move forward with renting out the property.

Getting Insurance

Next, you'll need to get landlord insurance in order to protect you and your property. Your regular homeowners' insurance policy won't cover any damages resulting from someone else living in your home.

The main things that your landlord insurance policy will cover are property damage from the tenants, lost rental income due to market changes, and liability protection.

Dealing With Logistics

Before you can start searching for tenants, you need to make sure that the home is habitable. The most important things for your tenants' safety are gas safety checks, making sure that there are smoke and CO detectors on every floor, and getting an energy performance certificate.

Another thing to think about is your new tax situation. Since you'll effectively be running a business, it's going to be important that you declare all of your financial expenses and income. You can get in a lot of trouble come tax season if you fail to make these adjustments.

Accidental Landlords Should Hire a Property Manager

With the logistics taken care of, you can start finding tenants. Accidental landlords always benefit from hiring a property management company to help them maximize their rental property. Being a landlord is a lot of work, whether you're real estate investing or an accidental landlord - a property manager takes a lot off your plate.

At Home River Group, we can help you manage your Charlotte rental property. From marketing the property to qualified tenants, screening tenants, collecting rent, and dealing with property maintenance, all you'll need to do is sit back and earn money from your property. 

To get a more in-depth understanding of our services, visit our site. When you're ready to discuss your property management needs, don't hesitate to contact us ASAP.

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