Around 99% of homeowners have a mortgage rate lower than 6% -- the current market rate -- meaning they are less likely to sell their property. As a result, some mortgage holders who have since bought second homes are becoming "accidental landlords" and must look at the housing market through a new lens.
Understanding the main challenges is essential to protecting their investment. But if you've never taken this route, it can feel overwhelming knowing where to focus your efforts.
Sounds like your situation? Luckily, we've got the answers you're searching for. Here are the top three challenges facing accidental landlords in Grand Rapids, MI.
1. Time Management
Anyone managing rentals struggles with managing their time, especially if this is their first rodeo. Balancing a full-time job and an investment property is stressful because it's so time-consuming. From crafting a listing to screening tenants, the demands on your time can feel suffocating, which is why the majority of landlords outsource their needs.
Hiring a property management company is essential for accidental landlords as they can offer rental property advice and handle daily tasks on your behalf.
2. Managing Tenants
Another issue unexpected landlords face is tenant management.
One of the top property management tips is to screen tenants by conducting a background check, complete. During the process, the manager reads through credit reports and references.
Accidental landlords likely don't have the right experience, which is why it's important to hire a property management company. These professionals can help you find a credible tenant who is more likely to care for the property and pay rent on time.
Further, regular landlord-tenant communication is key to a happy working relationship. If the accidental landlord doesn't focus on this, the tenant is less likely to renew their lease. In the worst-case scenario, the property will be vacant and landlord won't earn an income.
3. Property Maintenance
Out of all the landlord responsibilities, regular property maintenance ranks highly. Not only does keeping the property in good condition attract and keep tenants, but it stops landlords from getting into hot water. To stay on top of tasks, landlords must check in with tenants and respond to requests promptly.
Regarding the law, accidental landlords may not understand the latest updates or anything about tenant agreements. If this is the case, landlords could face legal trouble. But when you hire a property management company, these professionals understand the law inside-out, so you can focus on other areas of your business.
Overcome Top Problems That Accidental Landlords Face
Now that you know the three biggest challenges accidental landlords face, it's easier to set goals and seek professional guidance. Working with a property manager will protect your investment in the long run and prevent you from getting burnt out.
At PMI West Michigan, our team of experts protects our clients' investments and keeps tenants happy. Thanks to our years of expertise, landlords get peace of mind knowing that we handle everything, from tenant screening to daily tasks.
If you're an accidental landlord in Grand Rapids, WI, we'd love to hear from you. Contact us here to chat with a representative.
