If you've suddenly become an accidental landlord in Chicago, you'll be excited to know you could enjoy making an average passive income of $55,821.
However, it's important to learn expert property management tips to earn the maximum profit from your new rental. These strategies can help you navigate a competitive market and avoid the stress that affects many accidental landlords.
Keep reading for the best first-time landlord advice.
1. Understand Chicago Landlord-Tenant Laws
It's tempting to try to find tenants straight away. But this can be a costly error. First, it's essential to understand landlord-tenant laws that apply in Chicago so you don't end up in a legal minefield.
For example, as a landlord, you must comply with health and safety regulations. This includes ensuring your property has a working heating system and that your water supply pressure meets minimum standards.
You should also be aware of how to file for eviction if it becomes necessary. Using practices such as changing the locks is illegal, and you must instead file a lawsuit. If you were to use unlawful practices, you could face consequences such as being fined.
2. List Your Rental Property
Tenants are always searching for great properties in the Chicago rental market, and you need to ensure your listing showcases your home.
This means using only the best-quality photos, as these will draw the attention of potential renters. You could even include a walkthrough video where tenants can get a better idea of the layout of your property.
When creating your listing, try to keep it concise yet informative. Tenants will be interested in details such as the number and size of your rooms. They'll also want to know about its location and what amenities are in the surrounding area.
If they learn that your property meets their needs, they'll be more likely to inquire about its availability.
3. Set a Reasonable Rental Price
One of the most crucial rental property tips is to be well-informed when pricing your home. When you understand the market, you can choose the perfect price point that attracts tenants and maximizes profits.
This helps you avoid the pitfalls of pricing too high, having vacancies, not asking for enough, and earning less than you should.
4. Manage Your Budget Effectively
It's a terrific feeling when profits are rolling in each month, but you also have to plan for outgoings. Maintenance issues such as a refrigerator fault or a water heater breaking down could happen at any time, and you need to be able to pay for repairs or replacements.
You also need to remember you'll have to pay taxes. Setting aside a percentage of your monthly profits will ensure you have the cash flow to manage these expenses.
PMI Cook County Can Help Chicago Accidental Landlords
Accidental landlords can flourish by building a solid foundation. At PMI Cook County, we have extensive experience in the rental property market.
We take pride in being responsive to our clients and providing outstanding customer service. Using tried-and-tested strategies and innovative solutions, we can help maximize your rental income.
Let us remove the pressure of becoming an accidental landlord; contact PMI Cook County today.
