Joining the group of accidental landlords was likely never on one of your bingo cards, but here you are. You might have inherited a house from your grandpa or bought a second home and are now actively considering renting out your first home.
However you found yourself in this accidental situation is of little consequence now. What matters is you're ready to wear the coveted title of 'landlord' and make the most out of your rental property in Eagan, Minnesota.
Being a landlord looks like a rosy job, but behind the scenes, it's anything but. From chasing rent payments to keeping up with property repairs, a lot can go wrong if you're not well-prepared.
Here are a few handy tips to guide your steps.
1. Read Minnesota's Landlord-Tenant Laws
In the North Star State, as it is in every other state, there are laws that spell out the rights and responsibilities of both landlords and tenants. Getting familiar with the laws in your state helps you stay compliant in all aspects of your duties as a landlord.
For example, you must know the state's security deposit laws, so that you don't ask tenants beyond the allowed limit for your rental. You also need to be aware of your property maintenance and repair responsibilities.
There are other relevant laws that every landlord needs to know, such as the Fair Housing Act, and the Americans with Disabilities Act.
2. Do a Rental Analysis
You probably have an idea of how much renters in Eagan are paying for a property like yours, but that doesn't necessarily mean that's what you should charge. The rental market shifts from time to time, and getting the pricing of your property spot-on is key to maximizing your rental income.
Doing a rental analysis enables you to get deeper insights into the local rental property market. You'll have a clearer picture of how rents are trending, information which you can use to price your property competitively.
By the way, you can always get a free rental analysis here at PMI TC Metro.
3. Settle on a Management Approach
Many landlords self-manage their units, which means you won't be doing yourself a big disservice by being a DIY landlord. Unfortunately, when you're starting out as an accidental landlord, taking the DIY route might not be the best option.
Eager as you may be to learn property management by being hands-on, the business can be brutal if you don't know what you're doing. Thankfully, you can hire a full-service property management firm to take care of all your duties - at a fee.
Accidental Landlords Can Be Successful
Accidental landlords have what it takes to be just as successful as other real estate investors. As long as you're well-prepared for the tasks that lie ahead, you'll be in a good position to run a profitable rental business.
What's more, the professionals at PMI TC Metro are ready to step in and offer professional help. Our company is part of a national property management franchise, but our office is independently operated and focuses on the Eagan market.
Schedule a consultation with us today.
