It's risky to be a landlord these days, between the current real estate market and the rise in tenant scams. In fact, eighty-five percent of landlords report being victims of rental fraud.
In times like these, you may be wondering one simple question: How do I keep myself safe?
That's why we're here. In this article, we'll explain if you might fall into the term accidental landlords. We'll also explain how to avoid tenant scams as an accidental landlord.
If you're ready to protect yourself, all you need to do is keep reading.
What are Accidental Landlords?
Plenty of homeowners are accidental landlords. When people refer to the accidental landlord, it just means someone who has unexpectedly received property and intends to rent it out.
An unexpected property typically means one of two things. The first option is that a person inherits a property and decides to rent it. The second option is usually when a person moves and can't sell their previous property.
Becoming an accidental landlord isn't all bad. You can usually generate a fair amount of passive income this way. You can also help families in need and make sure that your property is being taken care of.
However, there are risks to becoming an accidental landlord. If you or your family become accidental landlords, you should first consider landlord insurance for accidental damage.
You also need to be aware of all the downsides of being a landlord. If you remain well-informed, it may be the best choice you've made.
Protecting Yourself From Tenant Scams
One easy way to protect yourself from tenant scams is to hire a property manager. They can keep track of all the intricacies of leasing a property for you. If you end up needing to evict a tenant, they can also help you with that.
If you're determined to be a solo landlord, however, the most important thing you can do is be very aware of who your tenants are. Create an airtight lease in regards to who lives on your property. In addition, make sure that you have clauses that prevent subleasing.
Make sure that you screen all your tenants to ensure you can trust them in your home. The tenant screening should include a background check to make sure they haven't been convicted of a violent crime. It should also include verifying that their job provides enough income to pay the rent.
Reach Out to Us
Now that you know how to protect yourself from tenant scams as accidental landlords, you know all of our advice for the accidental landlord. In the meantime, do you have any other questions or concerns? Do you need any of the services we provide?
If the answer to either of your questions is "yes", then you should reach out to us. At PMI Austin, we pride ourselves on being able to take care of your every need.
Let us prove ourselves to you- contact us today and we'll get back to you as soon as possible!
