Renting out your property can be beneficial or it can be an inconvenience. There are a few things to do before you rent your house. It is prudent that you are financially prepared. You should also familiarize yourself with the landlord-tenant law of your state and the legalities of rental agreements.
Think about who will manage the property. A property-management firm can handle everything from finding tenants to collecting rent and even taking care of repairs. If choosing to manage the home yourself, you could be called upon to fix a problem at any time of the day. If you are handy enough, you can deal with the issues yourself. It is still a sensible idea to know a plumber, an electrician and a carpenter should the need arise. Make sure you have a good relationship with them and are able to trust them to work alone if you happen to be unavailable, possibly out of town.
You would want to make sure your property is appealing. Touch up the landscape. Update your home with a new coat of paint. Fix any issues with plumbing, electrical, or property damage. Install new locks on the doors. Install smoke detectors and a carbon-monoxide detector. Buy fire extinguishers to put in the kitchen and upstairs, when applicable. Enroll in proper home insurance policies.
When deciding on a rental fee, do a market study. Look at the prices of other rental properties in the area similar to your home. Notice the amenities that they provide. Consider what would be included in your rent. Will ground maintenance be cared for by the landlord or will it be the tenant’s responsibility? Make sure your lease is easy to understand. Clearly outline the changes tenants can and can not make to the property. Be sure to state the property’s condition at the end of the lease so that the tenants know what needs to be done to get their security deposit refunded. It is advisable to have a real estate attorney should your tenant fail to abide by the lease terms.
Choosing your tenant can be an intricate task. It is important to check public records such as credit reports, driving records and do a criminal background check. A background check will notify you of any problems the person has had with the law. It is definitely to your advantage to look into such matter to avoid future complications. Stay up-to-date on the Fair House Act guidelines. Determine the criteria for your rental applicants. Give the potential tenants a detailed list of your terms such as monthly income levels, the number of tenants who may occupy the home, your position on smoking and your pet policy.
Be sure that all of your papers are well organized. Maintain proper records of your revenue and expenses for filing your tax returns. Having an accountant to help you with record keeping can spare you frustrations. Keep a precise list of all violations that occur.
Renting out your house will be less stressful from start to finish if you are well prepared. Take care of all that can be done before you begin the screening process of your possible tenants. Meet your applicants with an open mind and a friendly smile.