Deciding if you should rent your home can be a tough decision. There are several factors you need to take into account before deciding if it is a good idea to rent out your home. The first factor is knowing if you will have a positive cash flow. You also need to know if there is a high rental demand in your area. All of these might seem overwhelming and you might not know where to begin. So today we are going to help you out with some tips to begin renting out your home.
Attract Quality Tenants
Some owners want to rush and rent the property as fast as they can. So they decide to not make any improvements to the house. This can make you settle for less rent than what you could have charged if it was upgraded. Getting more money isn’t the only reason for upgrading, the main reason is attracting the right tenants. By having a better house you will attract quality tenants.
- New appliances
- New Heater/AC units
- Granite countertops
- New cabinets
- Replaced carpets with hardwood floors
- Updated bathrooms
Now that you know how to attract quality tenants you need to make sure that they are actually good by screening them. Make an application form that includes name, social security number employer, salary, previous landlords and references. The application should include a section that says that they authorize you to do a credit check and background check. You can have an online agency to do the work for you or do it yourself.
How Much Will It Rent For?
Research your local market. Unfortunately, sometimes you can’t base your rent price on what your need is. It is about how much you can get based on your local market. What does this mean? Most people start doing the numbers based on their mortgage, utilities, etc and set the rent price but the house never gets rented because of the price in not within the local market. So I hate to break that to you but not every home makes a good rental. This really depends on your finances but you definitely don’t want to be losing money. So the first step is to research your local market. Many property management companies will give you a free rental estimate. Another way is to look on the internet for rentals in your area and compare.
Laws
If you don’t already know there are many laws in the rental industry. So you need to know and follow your federal, state, and local laws. If you are considering renting out several properties then taking a course on Fair housing laws is a must. Housing discrimination is a common issue in the rental housing market you might be doing it without even noticing it. You need to follow all necessary laws in order to avoid lawsuits and maintain a positive reputation.
If you would rather not have to worry about anything, consider working with a property management company. At Five Star Property Management not only do we collect rent payments for you, but we also deal with all the tenant’s complaints, handle maintenance issues and fill vacancies.
Learn more about us and our services!