November 7th, 2022 7:31 AM
Have you ever found yourself in the undesirable position of owning two homes when you only wanted one? Undoubtedly you considered the prospect of renting your home to someone else. Renting is a common practice. Most of the time, it occurs with a minimal amount of fuss, but there can be challenges and potential pitfalls.
Keep these tips in mind:
- Determine what you’ll charge for rent. Call on properties similar to your own to determine the going rental rate for your home’s size, condition, and neighborhood. That way you can settle on an amount that covers your needs but doesn’t price you out of the market.
- Acquire rental property insurance. This is different from the insurance you carry when you’re living in the home yourself. Contact your insurance agent.
- Spend the time to find a good tenant. A good tenant makes every other step this process practically unnecessary. Ensure your tenant has a job, decent credit score, and good rental history.
- Have your tenant sign a lease. The local real estate investment club is probably the best place to find a good lease. Your local club is comprised of seasoned real estate investors, and they’ve seen it all. The next best option is to find a local real estate attorney.
- Get a deposit. A tenant wants to get their deposit back. It also protects you should something break, the carpet is ruined, or the rent check never arrives.
- Require your renters to carry renter’s insurance. Your rental property insurance policy will not cover the belongings of your tenants. If they have renters insurance, they’re much less likely to sue you if something should go wrong.
- Understand the eviction process in your state. Real estate laws are very state specific. Be sure you know what’s involved in getting a tenant out of your property should the need arise.
- Consider a property management company. If you’re out of town or can’t stand the idea of dealing with a tenant, a property management company will collect the rent and handle minor emergencies and repairs.
Taking care of these 8 items will go a long way towards making the rental process as painless as possible. Get the help and advice you need to ensure you have a successful experience.