Many property owners consider the idea of renting out their houses to tenants. However, whether it’s for the benefit of gaining extra income or paying down your debt for the family’s needs, becoming a landlord can be indeed a big challenge. It can even become big trouble when specific considerations aren’t made. Whether you’ve inherited property or your family have decided to live abroad for good, here’s what you should expect when you’re planning to put your place up for rent, especially for families searching for new homes:
There are specific landlord-tenant laws you have to understand.
When it comes to becoming a landlord, the first thing you should do is to know and understand the landlord-tenant law. Most states observe specific landlord-tenant laws that can help rent your property out to tenants. Before doing anything, it’s essential to follow the procedures and processes about security deposits, the number of notices you have to give tenants when you want to evict them, and the extent of access to your property. By understanding the law, you’ll be able to manage your rental property and your tenants properly.
You have many responsibilities as a landlord.
After understanding how the law works, you need to figure out if being a landlord is a responsibility you can handle on your own. From staying on top of repairs and maintenance to collecting rent and looking out for your tenants’ housekeeping skills, you have to understand all of these things to get started. So, try to ask yourself if you’re ready to perform all the responsibilities involved when deciding to rent your place out to other people.
Once you’ve decided to become a landlord soon, start looking for websites like Gumtree Real Estate where you can post ads about your rental properties. That way, you’ll get more prospects coming in to inquire about the rental.
You need to prepare your property before renting it out.
With several competitors in the market these days, you don’t want to rent your family’s property as it is since tenants tend to be choosy, especially if there’s an increased availability of rental properties. Below are the things you need to do to prepare the place for renting and improve the overall look of the property:
- Clean your home and ensure that all appliances are in good condition.
- Give your property a fresh coat of paint if the existing paint starts to peel off.
- Make sure that the place is well-lit.
- Check the electrical and plumbing systems if they’re working correctly.
- Make sure all windows and have appropriate locks for safety purposes.
- Ensure that your property is free of hazards, such that both your interior and exterior don’t have unstable handrails or broken steps.
You need to set the right price.
Once you’re done with the preparations and you’ve already determined your responsibilities as a landlord, then it’s time to set a competitive price for the rent. You can start by getting to know the rates of other rental properties in your neighborhood or community. As mentioned, tenants have a variety of rental properties to choose from. Thus, consider giving some good deals and be sure you pinpoint the best features of your place.
You have to screen potential tenants.
Once your property is ready to be shown, begin searching for the right tenants who will occupy your place soon. By renting out your property to them, it means you expect them to take care of the place and pay the rent on time without delays. Get the best tenants through the following:
- Collect references for prospective tenants and review their credit histories. The potential tenants’ credit scores can be a helpful screening tool to determine whether to accept or deny a rental candidate.
- Do an interview with your candidates to ensure you’ll be comfortable dealing with them.
- Perform a background check by checking references from previous landlords and employers.
Once you’ve got the right tenant, discuss the reasonable security deposit you’re going to ask. From there, make necessary arrangements for the appropriate payment schedule.
Preparing a contract of lease is a must.
When you already find your tenants, you need to prepare a contract of lease to get started. Under these circumstances, you may opt to hire an attorney or a project manager to customize the lease. If you decide not to ask help from anyone, you can utilize the standard lease form that you can find on the Internet. However, it’s important to review the form and see if there’s a need to tweak it to suit your situation. An example of a provision you may want to customize is whether you allow pets and the applicable rules you’re going to follow.
Conclusion
Renting your property out to tenants can be a massive undertaking. It’s also the kind of business that you’re going to have for yourself and more importantly, your family, thus careful consideration is required. By knowing what to expect in the rental process, you’ll get yourself in the right direction with the least amount of headache and best possible results. Not only that but you can also get to help some families looking for a new home within your area.
This is a collaborative guest post. The ideas and views expressed do not necessarily reflect those of Mommy Ramblings.
