In a recent article, Money.com reported that, as of 2022, over 60% of U.S. households plan to give, receive, or have already received inheritances, such as properties, cash, and other investments.
If you recently inherited a real estate property in Red Bank, NJ, yourself, you may have decided to turn it into an income-generating rental. You made a wise decision, as even first-time or accidental landlords can earn a good income, provided they understand the leasing process.
To that end, PMI Inspired created this accidental landlord guide sharing property management strategies. Read on for tips to help make your Red Bank rental thrive.
1. Understand NJ Housing Laws
The most crucial property management advice we can give you is understanding landlord responsibilities and obligations under state and federal housing laws. There are lots, with the most crucial ones being:
- The Fair Chance in Housing Act (FCHA, New Jersey Statutes § 46:8-52 to 64)
- Landlord-Tenant Relations (New Jersey Statutes § 5:29-1.1 to 1.2)
- The federal Fair Housing Act (FHA, 42 USC 3601 et seq)
The New Jersey Department of Community Affairs provides a comprehensive list of NJ housing laws. Review them carefully to help ensure you and your rental stay in legal compliance.
2. Familiarize Yourself With Red Bank Rental Ordinances
You must also familiarize yourself with the rental laws implemented by the Borough of Red Bank, NJ. Ecode360.com has published an online copy of its legislation; carefully read Chapter 523 (Rental Property) and Chapter 530 (Rent Control). Both chapters will help you better understand your legal obligations and rights, including:
- Apartment maintenance
- Rental registrations
- Inspection requirements
- Establishing rental prices and increasing rents
- Violations and penalties for non-adherence
3. Set the Right Price
According to BestPlaces.net, the monthly U.S. average rent for a two-bedroom unit is $1,430, but it's 21.7% higher at $1,740 in Red Bank. Still, it's close to the statewide average of $1,710.
Because Red Bank rental market prices are already high, the last thing you want is to charge more than what's fair or reasonable for your property. Doing so will only put off prospective renters or increase your odds of dealing with evictions for non-payment.
A property analysis is an excellent way to establish a reasonable rental price. You can also request one from our property management company, PMI Inspired.
4. Outsource Tenant Screening
You can select the most suitable tenants by screening them thoroughly. However, you must ensure your selection process complies with housing laws, such as the FCHA and the FHA.
To minimize your stress of finding high-quality renters, consider outsourcing tenant screening to professionals, such as PMI Inspired. Our property management experts understand all screening laws and select tenants through a fair and consistent background-checking process.
Accidental Landlords: Keep These Strategies in Mind
Understanding federal, state, and local housing laws, setting the right rental price, and outsourcing tenant screening are some of the most critical strategies accidental landlords in Red Bank, NJ, must implement.
If all those tasks seem like too much hard work, don't worry. Our highly skilled and experienced property management experts at PMI Inspired can take over all of them for you. With our expertise, plus the backing of PMI, the national franchise we're a member of managing over $5 billion of assets, we can help you succeed as an accidental landlord.
Speak with us today to request your complimentary property analysis!
