Life has a funny way of throwing curveballs. Most of us have experienced it, especially during the past couple of years with the economic fluctuations caused by the recent pandemic.
One of the most common shifts, especially in the US, is the influx of "accidental landlords." Maybe someone inherited a new home and had to move out for some reason, but they struggle to find a buyer. The next thing they know, they're dealing with renters, collecting payments, and fixing the property.
There are more cases of accidental landlords than you might think, especially in Indianapolis, a busy city with a thriving real estate market. So, if you find yourself caught up in the overwhelming world of accidental landlords, we have prepared some tips on how you can keep great tenants and navigate yourself in the field of the rental business.
Know the Local Laws
Even though being a landlord isn't something you planned, you still have legal duties that you must follow to avoid future problems or fines in your rental business.
As an accidental landlord, it is essential for you to be aware of your legal responsibilities. In fact, aside from the federal law, you also have to familiarize yourself with the state laws in renting properties in Indianapolis.
One of the principal laws that you must be mindful of is the Indiana Residential Landlord-Tenant Act or IRLTA. This act states the various rights and duties of both owners and renters regarding different components of their rental relationship.
Some of the crucial sections in the IRLTA that you must take note of are:
Security deposits
Before getting the security deposit, landlords have to give renters a written list of any damages that are already there in the rental unit. When the tenant moves out, the owner has to return the security deposit within a certain amount of time, deducting from it the list of damages that the tenant caused while renting the property.
Rent payment
Indiana's leasing law requires rent to be paid at the beginning of every month unless the landlord states otherwise in the lease agreement. However, Indiana doesn't currently have any laws controlling rent, so an owner can charge whatever they think is fair.
Furthermore, you should note that you are free to raise rent prices by any amount you choose. In Indiana, however, the landlord-tenant act states that they must give the renters at least 30 days' notice before implementing the increase in their rental price.
Lease terms
In Indiana, lease agreements should clearly state the terms and conditions of the lease. This includes the amount of rent, the leasing period, pet rules, and who is responsible for repairs. As an accidental landlord, make sure that you provide written lease agreements to your tenants for you to keep track of your rental terms.
Eviction procedures
According to state law, landlords can legally evict a renter who doesn't pay rent or breaks the terms of their lease. You must also keep in mind that you must follow specific steps and deadlines during the eviction process. This includes giving the tenants enough warning and filing the essential paperwork with the court.
Fair Housing Laws
Federal fair housing rules say that landlords in Indiana can't discriminate against people because of their race, color, national origin, gender, sex, family status, or disability. Accidental landlords must always remember this when screening tenants for their rental homes.
Habitability Requirements
Even though you are an accidental landlord, you are expected to follow Indiana’s state law and keep your rental homes in a condition where people can live. This means giving your tenants basic services like water, electricity, and heat as well as fixing anything that needs to be repaired on time.
Property Maintenance
As required by the local building and housing regulations, Indianapolis landlords are also responsible for keeping their rental homes in good shape, which equates to good maintenance. This means that accidental landlords also have to regularly check if their rental property is safe and livable. Some of the things that you have to maintain are structural stability, plumbing, electrical wiring, and the electrical installation of the rental property.
Set aside money to get your property ready to move into
We know that repair fees to make your property move-in ready are some of the most common and BIGGEST costs you'll have to deal with as an accidental landlord, aside of course from taxes and turnover costs for your tenants.
In order to give you a rough draft of where to start when it comes to repair expenses, here are some parts of your property that you should look into:
Roof
Windows
Paint
Appliances (stove and refrigerator)
Lock Changes
Smoke alarms that work at the start of the lease
Exits that are safe and work properly
Sanitary systems
Register Your Rental Property in Indianapolis
Another important thing that accidental landlords in Indianapolis should keep in mind is the Indianapolis City Ordinance. This law requires all landlords in the city to register their rental property with the Department of Code Enforcement (DCE).
Get the Right Insurance for Your Rental Home
Insurance is crucial for people who deal in real estate in Indianapolis. For accidental landlords, you can use the same insurance company that you use for your home. This is especially helpful if you are turning your own home into a rental property.
Accidental Landlord? Property Managers Make Life Easier!
We know how hard it is and how much time it takes when you become an accidental landlord. You need to quickly learn about the complicated laws, care duties, managing tenants, and money issues that come up.
Fortunately, as property managers, we're here to help you with many of the challenges you face as an accidental landlord.
We at PMI Midwest can give you advice on legal safety, good property management, dependable repairs, and thorough financial reports. These services can help you get the most out of your rental income and make being an owner of a rental home less stressful.
Are you interested in learning more about PMI Midwest? Visit our Indianapolis Property Management page to discover all the services we offer.
