So you want to rent your home. You know exactly what considerations to make before renting your home right? Wait you didn’t take a class about what to know before renting your property? Haha we didn’t think so. Although it probably should be a class.
Here are some things homeowners should consider before renting their home:
- Legal: There may be local, state, and federal laws that apply to rental properties, such as landlord-tenant laws, fair housing laws, and zoning regulations. It’s important to familiarize yourself with these laws and make sure you are in compliance with them. Or hire a Property Manager who is.
- Insurance: Make sure you have the appropriate insurance coverage for your rental property. This will likely include landlord insurance, which covers things like damage to the property, liability, and lost rental income. Make sure you require renter’s insurance as well.
- Finances: Consider how much rent you can and should charge. What is the actual property rental value? Does it cover your property expenses? You should also have a plan in place for handling late rent payments and evictions if necessary.
- Maintenance and repairs: As a homeowner, you are responsible for maintaining the property and making any necessary repairs. There is a difference and you should be ready for both. Make sure you are using licensed and insured vendors for any work done at your property. If you don’t want to deal with it, then hire a property manger.
- Emergencies: Are you prepared to get those call s in the middle of the night? Do you have vendors you can send out in a pinch?
- Leasing: Think about how you will market your rental property and find qualified tenants. This may involve listing the property on rental websites, placing ads in local publications, putting up signs, and actually meeting people for showings. Don’t want to spend your time doing that- hire me.
- Screening tenants: It’s important to carefully screen potential tenants to ensure that you are renting to responsible, reliable people. This will involve checking their credit, employment, and rental history. You must know and follow all Fair Housing laws. Have a qualifications statement and treat everyone the same. If you are unsure- hire a property manager.
- Lease agreement: Have a written lease agreement in place that clearly outlines the terms and conditions of the rental. Make sure both you and the tenant understand and agree to the terms before signing the lease. Do you know all the local, state and federal addenda that needs to be included. If not- look into property manager.
We hope this helps as you make your decision to rent your home. Providing housing is great. But, making sure you handle it correctly is imperative.