Accidental landlords often find themselves excited about the idea of renting out a property but unsure about where to start.
If you’ve inherited a home from a parent or another relative or you’ve moved out of your home into a different home and you want to rent it out instead of selling it, you are probably classified as an accidental landlord. It means you didn’t intend to become a real estate investor, but here you are.
We work with rental property owners like you all the time. We know it can be a little overwhelming. So today, we want to talk about how to be a great (and profitable) New Jersey landlord.
Educate Yourself on Landlord and Tenant Laws
The best place to start is with the requirements for landlords in New Jersey. You’ll need to know how to screen tenants without violating fair housing laws. You’ll have to know the requirements for security deposits and tenant disclosures during the leasing period. There are steps you need to take to protect your resident’s privacy and personal information.
It’s easy to make a mistake without even realizing that you’re in violation of a law, so make sure you understand your requirements and responsibilities. Keep up with all legal changes. For example, there are differences between pets and service animals. If you try to charge a pet deposit on a tenant who has a service animal, you could find yourself embroiled in some expensive litigation.
Put Together a Tenant Screening Process
The tenant you choose will really dictate your success as a landlord. Good tenants are easy; they pay rent on time and take good care of your property. But bad tenants are difficult. You’ll find rent is never paid on time, you’ll discover lease violations every time you’re at the property, and they may leave behind damaged property that exceeds their security deposit.
You have to screen thoroughly. A lot of accidental landlords rely on instinct or a simple credit report. There’s more to it. Good tenant screening includes verifying income and employment, talking to past landlords, and searching eviction and criminal histories.
Be Responsive with Maintenance Requests
No one wants a phone call over the weekend from a tenant who is reporting a leak or a fire or some other disaster. Emergencies obviously require an immediate response, but it’s also important to respond with a sense of urgency even when you’re handling routine repair requests.
Highly desirable residents will never stay in a property when their maintenance needs aren’t taken seriously. Put together a list of vendors you can trust to do good work. You’ll want licensed and insured professionals who are also fair with what they charge. You want reliable vendors and contractors who will deliver great service to both you and your residents.
Most importantly, don’t tolerate deferred or unreported maintenance. It will only lead to more expensive and time-consuming problems.
Consider Professional New Jersey Property Management
You need a strong lease and an accounting system. You need to document everything and be available to your residents.
Working with a professional property management company is a good way to be a successful landlord. If you’re not sure you have the time, energy, personality, or skill set to effectively manage your rental property, hire someone experienced to do it. You’ll end up earning more and spending less on your property, and you won’t have to worry about rushing over to the home to respond to maintenance or finding new tenants when your current residents move out.
Contact our team at KEYVEST. We have been managing properties throughout South Jersey, Central Jersey, and the Jersey Shore for years.
