
Whatever the reason, there are more and more accidental landlords every day throughout the country. With that, comes a whole new set of responsibilities, headaches and challenges, but it is very rewarding if done right. Follow these guidelines to set yourself up for success.
Treat Your Rental Like a Business and Investment
As with any investment or business, you're likely to have an advisor or two to help you navigate the complexities of any situation. Owning a rental property is no different. Once transitioned into a rental, you're likely to face several issues you never thought you'd face as an owner occupant. I recommend enlisting the services of a competent and experienced real estate or business attorney and a personal accountant. These advisers will help you organize your new business, provide consultation on both legal and tax matters to help you maximize your knowledge and your return on investment.
Know Your Insurance
Your homeowners insurance policy might not cover the types of incidents that arise while land-lording. When tenants occupy your home, there is a whole new array of damages, financial loss and accidents that can occur. Talk to your homeowners insurance company and discuss additional coverages to protect you.
Create a Strong and Specific Written Lease

Know the Fair Housing Laws
All states have laws prohibiting certain types of discrimination when it comes to renting or purchasing property. As a rule of thumb, DO NOT discriminate for any reason. Even asking a prospective tenant about marital status, religious views, familial status, ethnicity, or sexual orientation can land you in hot water. Screen your tenants carefully with credit checks or background checks but never reject a potential tenants application without a valid reason.
You may be an accidental landlord, but intentionally following these guidelines will put you in an excellent position moving forward. Best of luck!
Jared
Reimer is a real estate broker with Prudential Rocky Mountain Realtors in
Northern Colorado. Real estate is his
passion and he always wants to connect with like-minded and savvy real estate
fans. For more information or to get in
touch with Jared, please visit his website at www.ReimerRE.com or email him at JaredReimer@ReimerRE.com
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