Being a landlord as a result of a conscious decision is tough enough already. It's quite an ordeal to figure out all the logistics, and even after you do, you'll have to work to keep up with everything.
Now imagine if you become an accidental landlord. Whether you've suddenly inherited property or have to keep your current one instead of selling, it can be stressful landing in a completely unexpected situation.
But you can change all that by educating yourself. Here are four must-know tips for accidental landlords in Minnesota, MN.
1. Understand Minnesota Landlord-Tenant Laws
Minnesota has specific laws regarding landlord-tenant relationships. To avoid a reputation as a bad landlord and the consequences of breaking laws, take some time to read through and familiarize yourself with these things. You'll also know what your landlord responsibilities are.
One key aspect is that the state doesn't have a limit on the amount of security deposit you can charge. However, you must return it within 21 days after your renters move out.
Also, your lease must comply with state laws. On top of that, a written one is required for rentals longer than 12 months.
2. Get the Right Insurance Coverage
You might already have homeowner's insurance, but realistically, it probably doesn't cover rental activities. Part of our real estate advice is that you should definitely consider getting landlord insurance, which covers:
- Property damage
- Liability protection
- Loss of rental income if property becomes uninhabitable
3. Understand Property Management Requirements
Managing a rental property involves many tasks, such as:
- Maintenance
- Collecting rent
- Handling tenant issues
The law requires that you provide a property that's habitable and safe to tenants, so be prepared to not only maintain your property, but to make repairs too. One of the top property management tips is to establish funds for emergency repairs and routine maintenance to avoid unpleasant financial surprises.
4. Work With a Property Management Company
Being a landlord can be overwhelming, especially if you don't have prior experience. So get some outside help from a property management company.
You'll have a team of experienced professionals at your disposal to help guide your time as a landlord. They'll also take care of all the difficult work so you can sit back and truly enjoy the profits. For example, they'll perform tenant screening to ensure that your property will be well taken care of by your renters.
Get the Best Help for Accidental Landlords
If you've joined the ranks of accidental landlords in Minneapolis, don't be stressed. As long as you do your due diligence and stay informed on legal obligations, you can minimize risks and maximize returns.
Plus, if you enlist the help of a property management company, you can further reduce stress. Even though you'll have to pay for their services, the ease you'll feel as a result will be much more valuable than any sum of money.
Get in touch with us now if you'd like our rental property management services. We at PMI Minneapolis St Paul offer free rental analyses!
