Property rental is beneficial in many ways, but it also generates certain responsibilities. Owning and managing a rental property isn't a piece of cake, but you can make the most from it if you prepare yourself beforehand and take into consideration a wide range of its aspects. Here are 6 essential tips to help you prepare your property for rental.
1. Take care of insurance
This is easily the most critical aspect of owning any property. If you settle on a standard rental home insurance policy, it will cover the costs of repairs for specific damages – a typical one will cover only some kinds of damage, like lightning strike or fire, so if your property is located in a high-risk location, you should choose other insurance options.
Moreover, your insurance will reimburse you for the lost income while the damages done to your property are being repaired – when the tenants move out and you're proceeding with reparation works, you'll be still able to collect rent for this time.
2. Inspect your property for problems
Have a good look at your property and repair potential problems, such as roof leaks, driveway cracks, clogged gutters, leaky pipes and faucets, damaged electric outlets or even details like burnt-out light bulbs.
Consider the matter of safety as well – make sure that each floor of the property and the kitchens are equipped with fire extinguishers and smoke alarms in good working condition. If you're renting a part of your property, separate the rental area making sure it's secure and private.
3. Hire professionals
If you'd like to invest in your property, it's a good idea to hire an interior designer to help you add some key decorative touches to make your house look more attractive to potential tenants. You can also choose to hire a professional cleaning team to help you prepare the property for rental.
To receive interesting offers from professionals in no time, post such jobs on Gumtree or other similar job portals, where freelancers look for new assignments and individuals post tasks that need to be taken care of.
4. Furniture and appliances
Have a look at your furnishings and appliances, inspect them for cleanliness and remove the expensive fixtures from the property – you wouldn't want them get damaged or stolen. If you're renting a furnished property, make sure everything is in perfect working order. Appliances should be cleaned inside out – remember that even if they boost the rental price right now, in the future they might generate costs for maintenance or frequent repairs.
5. Define the market value of your property
Once your property is ready for rental, you should determine your monthly costs and research similar properties rented in your vicinity. This is what will help you to come up with a price list. Post ads for rent wherever they can reach your target and make sure you do it all in the right time of the year – the best period for finding tenants is from March until August.
6. Secure yourself legally
If you plan to manage the rental process yourself, make sure to secure a legal lease document for you and your tenant. If you’re not going to be the one to manage your property, feel free to spend some time to find the right property management company.
Those will usually charge you for their services from 4% to 12 % of the monthly rent, but in exchange they will do all the job for you – screening candidates, managing repairs, rent collection, managing IRS payments or even evictions if necessary.
Carefully preparing your property for rental, you'll be on your way to securing your house against potential damages and boosting its rental price to help you make the most out of every rental deal.
