How to Rent Out Your Home in 5 Easy Steps

Homeowners can become landlords too by turning their home into a rental property. The responsibilities may seem daunting and I’m sure you’ve heard a lot of horror stories about late-night calls, late rental payments, obnoxious tenants, and forced evictions. You don’t need to worry about those things – as long as the rudiments of renting are taken care of right from the beginning. Before you post that ad, follow these five steps to get your home ready to be rented.

Step 1. Spruce up the property.

It’s not just about the aesthetics but the general cleanliness and safety of the home inside and out. Having an updated and clean home also can attract more prospective tenants to your door. Having the basics is of utmost importance – fresh paint and carpet, fire safety, problem-free plumbing or electrical wires, working smoke detectors and carbon monoxide detectors, and a clean chimney and vents. Check that the property follows your city’s building code so that it will pass the home inspection later on.

Step 2. Do the paperwork.

Your mortgage company and your local municipality must be informed of the change of status of your property. Expect to pay a small fee to acquire their permission but you should not face any issues with this. With regard to insurance, change your current homeowner’s insurance to a Landlord Property Insurance. It’ll cost you more but the coverage will also be more extensive and for your own protection.

Step 3. Hire a property manager.

Yes, you would have to pay an average of 10 percent of the monthly rent for the services of a property manager but this saves you from time and stress. They’ll be in charge of everything from tenant search to rent collection to repairs. The cost is worth it because you won’t need to personally handle these responsibilities yourself. You can also go to real estate firms like Seaside Vacations for Myrtle Beach properties, My Castle House in Anaheim, and GetAway Vacations in Killington VT if you want professionals to do the work for you.

Step 4. The best part – calculate the rent.

Not too little and not too much, the rent should be reasonable for the size of your property and the location. A property manager is the best person to ask for the best estimate, or if you decide not to hire one, Craigslist is your go-to website to do your price research. You can also post your photos and ad on Craigslist if you want to avoid agent fees.

Step 5. Save for the rainy day.

As the money starts flowing in, don’t start spending on a new car or a vacation yet! As a general rule, 25 percent of the monthly rent should be set aside for future maintenance and repairs. Good luck on your rental property!

Both comments and pings are currently closed.

Comments are closed.