The term 'accidental landlords' refers to people who find themselves with a rental property without intending to do so. There are a few ways you could end up in this situation, like:
- Inheriting a home
- Moving in with a partner
- A work relocation
Whatever your reasons for becoming a landlord unexpectedly, you're bound to discover that there's a lot more involved in it than you first thought. Do you need a little help?
Explore these tips for new landlords to help you navigate these new experiences.
Research the Boulder Real Estate Market
Brush up on local rental laws before you place tenants in your home. In Boulder, property owners require a license to rent out their properties.
You must also comply with several other state and federal laws, for instance:
- The Fair Housing Act
- Boulder building codes
- Colorado landlord-tenant law
Once you are familiar with what's expected of you, you must learn more about the prevailing conditions and trends in the rental market. It makes sense to carry out a rental analysis on similar properties and find out what type of tenants rent homes in your location.
This information will help you set fair rents and market your property effectively.
An experienced real estate agent or property manager can assist you with Boulder rental market tips and landlord legal advice in Colorado.
Always Screen Prospective Tenants
One bad tenant can cause immeasurable damage to your bottom line and erode the value of your property. You must screen every tenant application to avoid placing bad tenants in your accommodations.
These checks include:
- Identity verification
- Affordability checks
- Employment confirmation
- Landlord references
You can hire a tenant screening company or a qualified property manager to carry out these checks.
Master Maintenance Coordination
Maintaining your rental units in good condition is a major part of managing rental properties. It's integral to:
- Promoting lease renewals
- Legal compliance (Colorado Revised Statutes § 38-12-503)
- Preserving property values
Effective maintenance coordination is the best way to stay up-to-date with preventive maintenance. It helps you budget effectively by spreading costs throughout the year and preventing small issues from becoming expensive repairs and replacements.
Precise Record-Keeping
From 2024 onward, landlords must pay income tax on rental income above $600. The good news is that many aspects of property management qualify as deductible expenses.
These include:
- Property management fees
- Property taxes
- Utilities
- Repair and maintenance costs
Keeping detailed records of your expenses and income makes it much easier to calculate your tax obligations.
Help for Accidental Landlords in Boulder, CO
There is a lot for accidental landlords in Boulder to learn and do to succeed in the rental market. Hiring a property manager is the best way to navigate this steep learning curve.
PMI Coal Creek is a locally owned company specializing in rental property management in Boulder. Our team has over 50 years of combined experience with managing rental real estate and is committed to providing you with all the help you need to profit from your rental property.
Our services include rental analyses, property maintenance coordination, and tenant management. Get the help you need to thrive as an accidental landlord in Boulder, CO.
