Tips For Renting Out a House
September 8, 2021 | Posted by: Sherry Corbitt
Are you considering renting out one of your homes? Renting out a house can be a great investment and can offer great profit. To rent out a house though, you need to first evaluate the necessary steps involved. You can incorporate these steps in simple yet productive ways.
Have Your Paperwork Organized
Before you start renting out your house, you want to ensure that you have all the necessary paperwork ready. Such paperwork should include rental applications, rental agreements, and documents on the house itself. Having these documents in place before a tenant moves in will ensure that everything is safe and legal. It also will help in keeping things organized and make the tenant process easier. When the proper documentation is provided, there should be no confusion about the rental agreement for the tenant, as everything will be in written format.
Determine A Renting Price
Setting a rent price is something that you should research and get information on well before a tenant wants to rent your house. There are many factors in determining a rent price, such as the area and size of your house. As well, the more features your house offers, the higher you can realistically set your rent. It is important though to set an accurate price, as an off price could cause issues. If you do not consider all the things that your house offers, you may charge too little and not be getting what you should. On the other hand, when you set your house higher than what it is worth, you will certainly have a difficult time finding any tenants. Research similar houses to yours in the area and establish what they are setting their price at. Also consider speaking with other landlords who have been renting for a while. They can offer wise advice and even give you an estimate of what you can list your rental at.
Have Policies Set
When you have people living in your house, you want to make sure that there are some policies set into place. The last thing you want is a wrecked house and having to deal with the repairs. Ensure that you include policies in the tenant paperwork, so that you have signed proof that they have accepted the terms you have in place. From their signed consent, you have legal protection if they happen to disregard any of the policies or cause damage to the house. Instead of having to deal with the repair costs, you can easily get reimbursed for any damage that has been incurred. Keep in mind though that although you need to have policies in place, they also should be reasonable rules for both yourself and the tenants.
When renting any property, having insurance in place is crucial. As briefly discussed previously, if a tenant happens to cause damage to any part of the house, you do not want to have to pay for the repairs out of your own pocket. With insurance, you do not have to stress about any type of damage, especially if you have a lot of coverage on different aspects of the house. There are many insurance companies which can offer great deals for you as a landlord. Do research on what you specifically want covered in your house. This can help you determine what insurance companies can help cover you.
Know the Landlord Laws
Before you become a landlord, it is vital that you are knowledgeable in all the landlord laws. There are various legal rules that landlords must follow and oblige by when having tenants in their house. Maintaining the safety of the house is a top priority, such as checking the breaker, heater, and house structure. Having an injury in your rental would be a very serious matter. Take the time to go over the rules with a professional and establish what you need to put into place around the house. As well, examine your house and determine what things could be or become hazards. Once you have established all the potential hazards, safetly fix such issues or hire someone to assist.
Choosing the Right Tenants
Once you have completed getting your house and legal aspects completed, you can start posting your house online. There are various renting websites that you can post your house on, Facebook being a popular platform. Once you begin receiving messages from people, it is important to not jump on a person or family right away. As a landlord, you will want a responsible and respectful tenant in your house. To find someone like this, it would be wise to set up tenant consultations. This can help you get to know the tenants that are interested in your house and it can help you determine if they will be a good match. There always is a possibility that finding a good tenant will take some time, even months. If you do not want a tenant that makes you uncomfortable for your property though, it certainly is best to take time and wait.
As a landlord, there are many things to consider when you rent out your house. Yet when you follow some main tips on renting, you can be sure that you will have success.
If you have any questions or concerns about renting your house, please reach out to me!
Sherry Corbitt, Mortgage Broker
-McGillivray, Scott (2019). 10 Must-Know Tips for Homeowners Looking to Rent Out Their Property. HGTV. Retrieved from https://www.hgtv.ca/real-estate/blog/10-tips-for-any-homeowner-looking-to-rent-out-their-home-1919194/
-Seller Guides (2020). How to Rent Out Your House. Trulia. Retrieved from https://www.trulia.com/guides/how-to-rent-a-house/