Many property owners in Chattanooga find themselves as accidental landlords-often after inheriting a home or relocating for work. While the role comes with its challenges, it also offers the potential for steady income.
From understanding legal requirements to handling tenant relationships, having the right Chattanooga rental property advice can make all the difference.
Whether you're new to renting or hoping to simplify your current process, our guide will help you tackle key responsibilities and make the most of your unexpected opportunity.
Accidental Landlords: What Are They?
When someone unexpectedly finds themselves renting out a property they didn't plan to own, they become an accidental landlord. It's a bit like waking up and realizing you've adopted a pet you didn't ask for--overwhelming at first, but with the right tools, you can make it work.
While it might feel like a daunting endeavor, many accidental landlords successfully navigate the process. With the right advice and planning, this unplanned situation can quickly become a manageable opportunity.
The Legalities: Landlord Tips for Chattanooga
Your first thought might be "I need to find a tenant," but a landlord's job involves more than just securing tenants.
Start by creating a legally sound lease agreement that outlines tenant and landlord responsibilities. Familiarizing yourself with Tennessee's landlord-tenant laws ensures you can handle issues like security deposits or eviction notices properly.
Protecting yourself from liability is another crucial step. Many landlords form an LLC to safeguard their personal assets. This step can be especially useful for accidental landlords who may not be familiar with the potential risks involved in renting out a property.
Managing Rental Property in Chattanooga
Tenant management is at the heart of successful rental property ownership. Begin by thoroughly screening tenants to ensure they meet your criteria. Tenant screening should include:
- Credit check
- Criminal background
- Rental and eviction history
- Employment status
The Federal Trade Commission (FTC) advises renters about background checks and tenant rights. Before you perform tenant screening, make sure you have written consent from applicants.
Once you select a tenant, clear communication is key. Make sure you set expectations early about rent payments, maintenance requests, and lease terms to avoid any misunderstandings.
Budgeting and Setting Rent
Equally important to managing tenants is budgeting for repairs and setting a competitive rent price. To stay ahead of costs and keep your property in good shape, remember to account for the following essential expenses:
- Regular maintenance
- Emergency repairs
- Tenant turnover costs
- Property upgrades
Following rental market in Chattanooga insights can guide you in setting the right rent based on average rates in your neighborhood. By researching comparable properties, you'll ensure your rent is in line with current market trends.
PMI Chattanooga Is Here for You
Most accidental landlords aren't prepared for the responsibilities that come with managing a property. Hiring a property manager can make all the difference, especially if you never intended to be a landlord in the first place.
At PMI Chattanooga, we specialize in full-service property management in Chattanooga and North Georgia. We handle the day-to-day tasks so you don't have to deal with unexpected headaches or the stress of managing your property alone.
Curious about how much you could earn from your rental? Contact us today for a free rental analysis and see how your property could work for you.
