The following blog is taken from podcast episode three, featuring Tom Womack, on The Accidental Landlord. You can subscribe to the podcast by clicking the link here, or listen by clicking below.
How did Tom Womack become an accidental landlord?
Tom Womack managed rental properties for his mother who developed Alzheimer's. Around 2017, Tom took over managing the rental properties and faced a big learning curve. Suddenly having to act as a landlord can present a lot of challenges.
He began managing the properties full-time, taking charge of everything from collecting rent to screening tenants and paying taxes. His 25 years of experience have brought up many challenges and learning opportunities.
Many of our clients find themselves with the responsibility of an extra home when a family member is not able to care for it. This common phenomenon is what we refer to as being an accidental landlord. These individuals did not intend on becoming a landlord or property owner, but due to unforeseen circumstance, found themselves with the responsibility and a long road ahead of them. While it can be overwhelming to learn the ins and outs of managing a rental property, with the right resources it is possible.
When Tom found himself managing the properties, he shared that this learning curve was minimized through helping his mother manage the properties previously. He found the biggest challenge to be reviewing the business side of things, getting paperwork organized, and managing other administrative tasks.
What advice would Tom give to others who suddenly find themselves with the responsibility of managing a property?
Tom shared that gathering all of the paperwork and documents together and organizing them was essential. From getting all of the leases together, to reading through them in-depth to understand the lease terms, it was important for Tom to know exactly what he was dealing with.
Being able to simply Google your questions and learn more where you have educational gaps can make a huge difference when you are first starting out as an accidental landlord. No landlord or property owner wants to get sued or violate fair housing laws, so you have to seek out education and resources on topics where there may be educational gaps. Tom shared that consulting with an attorney when you are not sure what to do can help you avoid legal problems down the road.
When Tom went through an eviction, what was his experience like?
Tom shared that his mother, who previously managed the properties, always handled evictions. After she was unable to care for the properties, and Tom was tasked with managing the properties, he also had to be responsible for the evictions.
One individual stopped paying rent as soon as Tom notified them that he would be managing the properties moving forward, knowing that once Tom saw the condition of the home, they would get evicted. The tenant stayed in the unit up until the court hearing, and Tom was unable to get into the property prior to that.
These types of situations can be incredibly stressful for self-managing landlords who may not be sure how to start the eviction process. Looking back on the situation, Tom shared that he feels proper tenant screening and background checks are a great way to avoid difficult situations with tenants. It's not uncommon for applicants to forge paystubs or provide numbers for employment or landlords that are false. By double checking applicant information, you can ensure that you are avoiding any issues prior to a tenant moving in. While thorough checks can't eliminate the possibility of having to evict a tenant, it will likely reduce the likelihood of this issue occurring. Tom noted that without his verification process, he would have accepted many tenants who were not up-front on their applications.
Overall, it is essential to vet tenants and ensure their applications are correct and up-to-date. Screening tenants can reduce tenant concerns in the long-run, and help landlords to find tenants who are more likely to stay in the property long-term.
