Whether you just purchased a house as an investment or are moving out and trying to make some extra money, renting it out is a solid financial decision. However, it’s not a smooth process in any sense of the word. You have to prepare your property and find responsible renters before you can even draw an agreement. With this in mind, let’s cover the most essential steps you have to take before renting your house.
Do extensive research
Before you put your house up for rent, it’s crucial that you do your due diligence when it comes to research. Even if you think you know the value of properties and rent in your area, you might be surprised at the variations. Many landlords overestimate pricing for their own flats or houses due to personal bias.
You should have a detailed look at prices for different kinds of properties in your area. Check out which elements of your home would be considered perks and which would be seen as potential downsides. This will give you a good idea about the price, but that’s not everything you have to consider. You must also evaluate the worth of renting out your place based on how much tax you would pay for your area. Sum it up and see if the move would suit your financial interests.
Prepare the property
It’s standard practice to prepare a property for your tenants. Or starters, you should check if all of your appliances are in order. Make sure your boiler or boilers are functional, as they are essential for anyone living in the house. A plumber can help you remove excess residue that could be blocking the pipes within.
It would also be helpful to get an electrician to analyze your home’s electrical works and fix any problems. Doing a once over can help prevent any potential issues that could come up in the future.
If you want to keep your house furnished for renters, you have to clean the furniture for starters. To make your home more attractive to renters, furnish your home with essential electronic devices. You’ll be responsible for the items that you leave renters, so keep that in mind before making the decision to leave furniture.
Promote the house
Depending on where you’re located, the house may get significant interest from potential renters. However, you can’t get renters out of thin air. You have to promote your place somewhere. You can put out an ad in the local newspaper, though this move will cost you. Your best bet would be to go online with your posting.
You can use social media to market your rental home with ease. An even better option would be to find websites that showcase properties. Try to find one that isn’t connected with agencies, as they may charge you a fee for the posting.
You have to make your house look good to potential renters, so make sure you take plenty of high-quality photographs. If you’re so inclined, you can get a professional photographer to do it instead for optimal results. Describe and show benefits in your posting to attract renters that search online. The right keyword could bring them closer to choosing your house instead of another one.
Draw up an agreement
Once you’ve found a suitable applicant, you should draw up a tenancy agreement. The details of the living arrangement must be put on paper to help you protect your house and other assets. Specify how long the agreement will last and the exact monthly price for the rent. Discuss and write down the necessary deposit for the renter as well.
To protect your assets and rental income, it’s recommended that you consult experienced property lawyers. They can help you set up a rock-solid agreement and achieve your long-term financial goals from the arrangement. Legal assistance will also help protect you from potential liabilities that you may not have even considered. With the help of a skilled lawyer, you’ll divide renter and landlord responsibilities fairly and have everything prepared on paper, which will help you avoid any legal issues in the long run.
Judging potential renters via phone or email isn’t going to get you anywhere. You should set up a few in-person interviews to determine who’s the best fit for your house.
Ask them basic questions regarding their finances and living style. It’s important to know if they have a steady income or if they’re studying in the area. Whether or not they smoke or have pets can have an enormous impact on house upkeep, so make sure you ask them these types of questions.
Renting your house can be a huge boon to your finances. However, you have to take the necessary precautions to make sure your investment pays off. Right from the start, you should consult property lawyers to help guide you through the process. With the right legal help and some preparation, you’ll find your ideal tenants as quickly as possible.