Do you own a home that you want to rent out or perhaps an extra home available to you through a marriage or inheritance? Instead of allowing it to sit and cost you money in payments and taxes, you can rent it out and make a profit from it. It can be tricky to become a landlord for a rental property, but if you follow some basic home rental advice from those who have experience with renting properties out, your chances of success improve greatly.
Search for a good tenant first. There are multiple ways to advertise including online, newspapers and by word of mouth. Check all information on the application including references, criminal history and credit to assess whether they will be likely to make rent payments on time each month.
Look at other apartments and homes for rent in the area.You don’t want to charge an amount that is too high and need to be able to compete with other landlords who have properties available. When deciding how much to charge for rent, carefully analyze the location, overall size of the dwelling, number of bedrooms and any extras that are included in the costs.
Draft a lease to protect both you and the tenant in the agreement. Write everything out in black and white, so if there are any questions, they are spelled out on paper. Ensure that any rules and regulations you establish comply with the laws for your state. Some information that should be included in the lease are the term, security deposit, how much rent is and when it is due, who is responsible for the repairs, the list of tenants who are living there, policies regarding pets and any other rules that must be followed while the tenant lives there.
Get insurance on the property if you don’t have it already to cover the home, medical expenses and rental income if something happens to the property. You should also get in contact with the proper repair people that you can reach out to if something goes wrong in the home while the tenant is living there. It is your responsibility as a landlord to fix anything that breaks.
The decision to become a landlord is a big one, but if you follow these tips for renting out your home you should have a profitable and enjoyable experience.