There are many different types of landlords in Minneapolis, just like there are many types of rental properties in Minneapolis. Each rental home needs different things, and every landlord also has his or her unique sets of requirements and expectations. Today, we’re focused on reluctant landlords and what they need to know before they begin renting out a property.
What is a Reluctant Landlord?
Typically, a reluctant landlord is a person who inherited a property or owns a property that isn’t going to be sold right away. Instead, the property will be rented out to tenants. If you have recently moved out of the property you grew up in and you’re not ready to sell it, you might be considered a reluctant landlord. If a family member left you a home in their will and you have to decide what to do with it, you could be a reluctant landlord. This is a class of landlords who did not intentionally go out and buy rental property to use as an investment. If that sounds like you, this is the fact that sets you apart from other investors and rental property owners.
Understanding Your Role as a Landlord
Landlords in Minneapolis need to understand the requirements for rental property in the city. For example, you’ll need to apply for a rental license, and it will have to be renewed annually. You also have to follow specific maintenance codes when you’re renting property out to a tenant. Add these issues to fair housing laws, disability laws, and other state, local, and federal requirements, and it’s easy to get overwhelmed. Simple and unintentional mistakes or missed deadlines and timing issues can get you into some expensive trouble. Be sure you understand what’s required and expected when you rent out property.
Self-Management and Professional Management: Pros and Cons
When you decide that you do want to hold onto the property and rent it out, you’ll have another decision to make, and that’s whether you want to manage the home on your own or turn it over to a professional management company. The pros to self-management are pretty obvious. You won’t have to pay a management fee, and you’ll retain complete control over your property and tenants. That can be appealing, especially if you already have the time and expertise that’s required to manage a property.
Hiring a professional property management company in Minneapolis will cost you money; however you’ll receive a lot of value and tons of services. You can leave the leasing and management of your home to experts who understand all the laws, the local market, and the needs and behaviors of tenants. With a professional management company working on your behalf, you won’t have to worry about any of the headaches that come with property management. You can let your property managers market your home, find you a tenant, collect your rent, and enforce your lease. If a tree falls through the roof in the middle of the night, your property manager will get the call and immediately begin to handle the situation.
There’s a lot that goes into deciding whether you’re prepared and willing to be a landlord. If you’d like to talk these things through, please contact us at RP Management. We’d be happy to tell you more.