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Thursday, 27 June 2019
Agent Resource Center
This Old House - Do-it-Yourself

Renting out Houses: A Complete Guide

Written by Posted On Friday, 14 June 2019 14:10

How much do you love your home? Do you want your home to be spoiled by strangers? What kind of question am I asking even? It’s pretty insane, Right? But, it is important to ask these questions from yourself when you are renting your sweet home.

A house has all of our emotions and belongings. We never want anyone to misuse our property. Renting never means exploiting ones’ property. So, what to do in such cases? How to handle the losses? How to rent our homes properly in a legal way without any future trouble? These are questions which fear us the most. To answer them, Horizon Cottages has prepared a well-researched guide that can help you in renting your property. So let’s find out the steps:

Do Long Term Planning:

Renting property is not just a matter of one or two months, instead it is a long term involvement. You can never expect to make profit if you move without any long term planning. If you do it properly, you can be a rich landlord in a very short span.

Determine your goals and have a keen eye on following aspects while renting out:

  • Mortgage
  • Taxes of property
  • Insurance plans
  • Maintenance
  • Repair costs

Pre-plan these factors well for a good profit.

Set Competitive Rental Rates

Renting is done usually for bearing the expenditures. We wish to set our rates higher than our needs. But, it is not so advisable. The rates should be competitive to the market-place else you will lose the potential candidate.

So, second step is to figure out justified rates.

Contact with the property management company:

Making money from renting is quite cool but do you know some of its flaws for you? You may need to wake up late at night for answering the calls of renters about security issues. Tap is leaking? They will call you. Garage has some issues? They will call, you again. You must be thinking what a mess it is. Aren’t you?

To refrain from such issues, the best option is to have a middle-man between you and the renter.

Abide by the laws:

Renting out is not just so simple. You have to abide by some laws. Renters have some rights and landlords have some responsibilities too which have to be fulfilled.

If you are thinking that you can enter your property any time then you are wrong. After you have rented the property, you need to seek permissions. Also, notices are to be given to the renters before requesting them to leave your house.

Prepare a leasing agreement:

I think you are well aware of this agreement as it is quite common and you can get this document easily from the internet. But what if you want some additional requirements like you do not want to rent out the store-room of your house?

In such customized cases, you have to prepare a leasing agreement from an authentic lawyer.

Proper advertisement:

Toppings over cake are always fascinating. The property shines even more when it is presented in a better way. Your house will not reach for better clients if it is not advertised well. So, after documented processes, go for nice photography of your house from different angels.

You can also go for online advertisements at different platforms and social media.

Final screening of potential candidates:

Finding the right match for your house is bit tricky. It demands several steps to screen out the best option. You can do this by:

1. Make the renters fill an online application to check the authenticity of clients. It will clear out who wants to get the property actually and who is just passing the time. The fee for the application can range between $30 to 50$ or even more.

2. Contact the references provided by the renters. You do not want to handle your house to criminals or non-serious people. So, better is to contact their relatives and friends to gather some info about their behaviour. It can save you from future issues.

3. Ask for their salary and source of income. This way you can confirm if they can pay for the future rent or not.

Security Deposit:

The final step is to have security deposit from the renter. You can keep this deposit safe in a separate account and return them when they leave the house. This money is utilized if the renters do any damage to your house.

You can also click pictures of the house to have better insight of the condition before handing over the house keys.

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