Whether you’ve bought a new house or are moving cities, the idea of renting out your old home may have crossed your mind. Many people prefer renting out their properties instead of leaving them empty as it also provides a source of income. Renting your old house comes with a benefit of extra income, a means of paying off debt, or a way of waiting things out until the economy gets better.
If you’re considering renting out your old home, the tips listed below will help you get going in the right direction.
1. Understanding the Responsibility of Being a Landlord
Renting out your property comes with a lot of responsibility. Before you put your property up for rent, you must determine whether you’re ready to take up the responsibility of becoming a landlord. You must understand beforehand that things will not always be smooth.
You’ll have to deal with all types of tenants, stay on top of maintenance and repair work, collect rent regularly, keep an eye on the housekeeping skills of the tenants, and pay more for the homeowner’s insurance policy.
2. Market Your Property
Once you’ve had the property painted and all the damages addressed, you can now put your property up for rent in the market. You can either post advertisements on property websites or enlist your home with property management companies.
The agents charge a commission for helping you find a suitable renter, whereas some companies might ask for 8 to 10% of the monthly rent.
3. Prepare Your Home for New Tenants
Taking care of any repair and maintenance work before you make your property public is important. A poorly-maintained property won’t get you many tenants, and even if you do get some, they won’t be willing to pay much for it. To make your house a real catch in the market, you must do all the necessary touch-ups and thorough cleaning in advance. It will also help you establish a good reputation in the market.
4. Navigate the Financials
Putting your property up for rent may seem like a simple task, but in reality, it is anything but simple. Before you can enlist your property for rent, you’ve got to ensure that you’re abiding by the tax laws, local property rules, and zoning ordinances.
It is always better to hire a professional to help you work through the financials. A professional accountant or an attorney can also help you work through landlord-tenant regulations and set the cost of rent as well.
5. Screen Tenants
This is a must! You have to choose your tenants very carefully to avoid any problems in the future. You need to be sure that you can trust them to keep your house clean and pay the rent on time. Gather all the references that you can and also check their credit history to ensure they aren’t defaulters. Once you’re sure that they’re reliable and have a clean background, you can proceed with handing your house over to them.
Becoming a landlord comes with a load of responsibilities. From preparing your house for the tenants to collecting rent, it is a lot of work. Therefore, you have to be really sure that you can take up these additional responsibilities and manage them well.
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