Renting out your property is a fantastic way to earn some extra cash or even as a primary source of income. We’ve all heard horror stories about the so-called tenants from hell or the responsibilities of being an accountable landlord and the rights of your tenants. We have gathered some things to keep in mind like background checks, lease agreements, and the legalities of the rental before starting out.
Do Your Research First
Before taking the big step you should:
- Get to know your market. You should look at similar properties around you, and see their monthly rate. If the rent is too high, or too low, tenants might not take it.
- Think about who you want as tenants. families, students, professionals? Seeking out professional help, like a property management company is a great idea.
It is crucial that you research the responsibilities of a landlord and the rights of your tenants. This will help you gain a better understanding of what goes into becoming a landlord and how to deal with the issues that come with it effectively.
Get Your Property Ready
Before listing the place on the market you should decide whether you want it furnished or unfurnished. It doesn’t hurt to consult property managers in your area to help you understand what needs to be done. According to Alexandria Property Management, getting an expert to evaluate the property first to let you know what needs to be taken care of is essential. Properties that are like a blank canvas can be more appealing to potential tenants since they can picture their new lives there. Hiring a professional cleaning service to give the property a deep clean will make it infinitely more attractive to tenants. Having high quality professional looking pictures of the property is an excellent idea.
Tenant Screening Process
Now we get to the nitty-gritty of the entire process. We recommend that you ALWAYS pre-screen before the potential tenant. Set up your criteria and go over them on the phone. Criteria like:
- Total monthly income should be about two to three times the monthly rent.
- An acceptable credit score, you can run a credit check on them.
- Employment—with actual proof of the monthly income.
- Acceptable references from past landlords.
- An agreed maximum number of people living there at any one time.
You can go over the criteria over the phone to the tenant and see if they pass. If they don’t, put them out of consideration.
Hire a Property Management Service
Property management services can cover a lot of the grunt work for you. They evaluate your property and find a suitable rent. They can even go through your property inspections to find good deals on any repairs or improvements you might need. As well as drafting the lease for you. After that, they will continue managing the property.
Hopefully, this guide has offered a thorough outline of the steps to consider when putting your property on the market for rent. Renting can be an excellent revenue source, even though there are some details to keep in mind before renting it out.