Renting out your home is a superb way to earn some extra cash, but one important thing that you need to understand is that the life of a landlord isn’t always a walk in the park. This investment will require you to regularly be attentive or pay someone to get things done for you. Regardless of how active you are, there’s always a chance things may not always be rosy. Luckily, we’ve handpicked the best 7 tips to help you rent your home.
If you reside in a tourist-friendly area such as near a major city or beach, renting the home as a seasonal or short-term rental might also be a great option. However, before you register your home as an Airbnb, start by finding out the regulations and rules of these kinds of rentals in your area.
Inspect Your Home
Once your house is empty, inspect it thoroughly and repair all the major problems. Start by addressing all potential problems including burnt-out light bulbs, electrical outlets, leaky pipes or faucets, driveway cracks, clogged or sagging gutters, and roof leaks. Furthermore, inspect the floor to ensure its sound.
In the down market, you most likely won’t be in a position to get away with renting out your property as-is. Tenants tend to be more choosy and attentive during these times mainly because of the increased availability of the rental homes as well as higher expectations.
Cleanliness also applies to appliances and furnishings. Incase you have valuable fixtures or furnishings you do not want to be damaged or stolen, then you should consider removing them. If you’re offering a fully furnished home, ensure everything in it is working.
If you’re providing appliances, make sure they are cleaned. Remember, renting your home with appliances might allow you to increase the rental prices.
Thoroughly prepare the new tenant by carefully cleaning the home and ensuring all the appliances are in perfect working condition. If you have chosen that you’ll rent out an area or room within your home, ensure you’ll be able to secure the rest of the house.
Properly Screen Your Tenants
Late payments or failure to pay rent can be avoided by making sure you properly vet your potential tenants. Moreover, it may not seem great to treat people that way, but it’s your investment and capital at stake. For this reason, you should pay closer attention to the tenant’s credit scores and also insist on proof of income and rent references.
You should begin to look for potential tenants immediately when your home is ready. As mentioned earlier, you need to carefully choose the tenant. You should be able to depend on the tenant to pay all rent on time and keep the home in perfect condition. Moreover, if an individual is someone you might be cohabiting with, you should ensure you learn his or her habits, so you can know what to expect.
Tenants will definitely feel comfortable when they have a safer home to reside in. Incase you’re just renting a part of your home, separate and secure the rental premises from the remainder of your home. Make sure the smoke detectors are in perfect condition.
Marketing Your Home
After your home has been cleaned and well prepared, create a list of the most important features that make your home stand out amongst the rest in the market. Consider some of the desirable features like a garage, air conditioning, a dryer, and a washer.
You should also consider using some unique adjectives and words that will help you rent out your home. Some of the words you can use include hardwood floors, gourmet, maple, vaulted ceilings, stainless steel appliances, and granite.
You can then post an advert for your home on a renowned site and the local dailies. Furthermore, look for real estate agents who you can work with to help rent out your home.
Renting your home is in itself a business and for that reason, it’s important to make sure you keep records of all the rent you’ve received, incurred exposes including receipts, late fees, and fuel costs when attending to some of the rental needs. Also, keeping records helps prevent penalties incase you are audited and the tax deductions aren’t allowed because of lack of required receipts. Furthermore, by keeping track of your income and expenses, you can see whether your home is profitable and even get better ideas for improving it.
Remember Your Insurance
As a rental, your house becomes a business asset and for that reason, it should be insured accordingly. The best thing you can do is contact a specialist rental property insurance company to see what the provider offers. Check out whether the company has products that cover liability, detached private structures, and dwelling protection. Moreover, consider some optional extras like water damage protection, rental income, and appliance coverage.
It’s also important to get in touch with your insurance and mortgage company to notify them that you’ll no longer be living in your home. The mortgage company has some rights to your home to protect its security interests. After you have notified the mortgage company about your intentions to rent out the home, you might have to meet certain requirements.
You’ll also be required to switch the homeowner’s insurance policy to that of a landlord. This will help cover any losses because of water damage, fire, natural disasters, and tenants’ negligence.
Create An Agreement
After you have found a potential tenant, ensure everything is done in writing, including processes on how to deal with non-payment or late fees, dispute procedures, and house rules. An attorney must review the tenant agreement, as it protects the rights of tenants as well as your rights as the landlord.
Rent like a boss. (n.d.). BBC. https://www.bbc.co.uk/mediacentre/proginfo/2020/42/rent-like-a-boss
Dizik, A. (n.d.). Give your house keys to a stranger? BBCpage. https://www.bbc.com/worklife/article/20140328-rent-your-home-to-a-stranger
Stempleman, N. (2013, November 8). When to rent out your house instead of selling. U.S. https://www.reuters.com/article/us-home-rent/when-to-rent-out-your-house-instead-of-selling-idUSBRE9A70VT20131108