What to remember when renting your house?
Photo by Kindel Media from Pexels
Giving your house on rent allows you to earn a second income and this is one of the several reasons why real estate is considered to be one of the better investment decisions. Many things can lead to you deciding to rent out your home. Many homeowners opt to buy a home as a kind of investment and they generally do not move into the bought property immediately. Sometimes your job needs you to shift your place of residence continually. Whatever the reason maybe there are certain things you need to keep in mind while renting your home.
Sprucing up the property
Before you have placed your home up for rent you are required to make sure that all the things are in good condition. You can provide a new coat of paint to your home if needed. Perform a complete evaluation and check if all the appliances are functioning as intended. Also, check water and power outlets and in case your home is bare you may wish to add some fundamental utilities such as stoves, cupboards, light fixtures, island range hoods, and fans. This will make your property more appealing and will enable you to find tenants more readily.
Decide your rent
It is tempting to decide on rent on a higher side for your property. However, doing this will only make things difficult for you to get a tenant. You need to decide on a competitive rate and yet at the same time, you must not undervalue your property. Ideally, your rent must be close to around 3% of the capital value of your property. This rate is not fixed and it also depends on other things such as your home location, amenities in the area, and so on. Premium residential complexes such as those advertised by property management companies that provide several amenities normally attract greater rent. There is a simple way of deciding the exact value of this rent. Just look up the average rent charged by similar properties in the neighboring area. You may decide to charge a bit higher if you have premium furnishing or fitting within the house.
Listing the property
There are several rental property advertising websites available these days. Therefore, finding a tenant has become an easy and simple process. All that you are required to do is to create a listing on sites such as 99acres, MagicBricks, and Quickr where you will describe the details of your property, maintenance charges, amenities, and expected rent. It might be a good idea to upload the images of your home as it increases the chances of finding tenants that are interested in your home. In case you do not have the time available for finding out a tenant by yourself, you may get in touch with property management working in your locality to perform this task for you.
Screen the tenants carefully
You can begin looking for tenants immediately after your property is ready to be displayed. Select your tenant extremely carefully because you must be able to depend on this person to not only pay your rent on time but also maintain the property in excellent condition. If this person is someone you will be living with together, ensure that you learn about their habits so that you do not run into nasty surprises. Never forget to collect references from these prospective tenants to check their credit histories. You also need to take certain safety precautions while screening a client. Keep in mind that this person will be a stranger in all probability. After you have found the right tenant you may ask for the right security deposit and make arrangements for a proper payment schedule.
There is a range of responsibilities associated with being a landlord and they may involve unexpected costing. Therefore it is a good idea to have a certain degree of cash reserves. Be aware of your and your tenants’ rights and it is advisable to be familiar with FHA. Keep in mind that renting out a property has to be beneficial for both tenants and owners. However, this is possible only if you take efforts to address the prospective pitfalls.