If you are considering renting out your home and need some advice on how to get started, Investopedia has listed 5 tips to get you started in the right direction:
1. Understand The Responsibility Involved
Although the benefits of renting can be great and numerous, acting as a landlord also takes great responsibility. If you decide to handle this responsibility on your own, you will need to stay on top of repairs, maintenance, rent collection, home inspections, tenant communication, and so much more.
2. Prepare Your Home
Your home should always be thoroughly cleaned and prepared before it hits the market. You will need to consider whether you will be offering appliances in the home and if so, the condition of the appliances. You will want to highlight the best, most appealing features when marketing your home (such as granite counters, stainless appliances, vaulted ceilings, upgraded flooring, etc.). It is also helpful to know that late spring and early summer seasons typically see the highest rates of activity in the rental market.
3. Hire Professionals
Working with professionals who know local tax laws and property rules is the best way to protect yourself and your investment. You'll want to know what rental expenses are deductible on your taxes and the limit of those deductions. It is also imperative to work with someone who is highly knowledgeable about landlord-tenant laws and governing rules for local communities. A Licensed Property Manager should know all of this, and should be fully prepared to get your property marketed and leased as soon as possible.
4. Set A Competitive Price
Your Property Manager can also determine the best price for your rental home. Typically, comparable properties in the neighborhood and local community are used to determine a strong and competitive price.
5. Screen Tenants Carefully
Not only do you want to find a tenant who pays the rent on time, you also want a tenant who keeps your home in good condition and follows the rules set by the community. Credit history, rental history, and income all play an important role in approving prospective tenants. An experienced Property Manager will screen a tenant for all of these items and will be very detailed when selecting a tenant for your home.
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