How To Rent Out Your House

Owning a home can be one of life’s most significant achievements and it’s used by some people as a measure of success in life. However, you might buy a home, and after some time you may need to move. Sometimes the best thing to do is to sell the house. However, in some markets people might find it difficult to sell their homes or they may want to hold onto the house as an investment. If done correctly, renting can put money in your pocket and allow you to hold onto a valuable asset in your investment portfolio. Here are a few tips if you are thinking about renting out your home:

• Find good tenants

Spread the word through friends, co-workers, and relatives and if you can, advertise in local newspapers and online. Potential tenants will get in contact with you, and you should have them fill out an application form which lists their basic information.

After this, you should run a background check on the potential renters checking criminal history and credit reports. If it’s too much for you, get an online agency accredited by the Better Business Bureau to do the checks for you. A good tenant should have nothing to hide.

• Determine the amount of rent to charge

Make sure the rent you intend to charge is fair so you don’t chase away potential tenants and at the same time make sure the rent isn’t too low so you are not cheating yourself. Do a little research on the rent charged in your neighborhood by checking online resources, newspapers and neighborhood rental signs. A local real estate agent is the best person to help you figure out the amount of rent to charge since they know the market better.

• Create a lease

Having a lease protects your rights as a landlord, and each party understands their obligations as well. The lease term should include the following:

• Lease Term
• Security deposit
• Rent due date and penalties
• Repairs and who’s responsible for them
• Rules of behavior including smoking, noise levels, and conduct
• Maintenance responsibilities and routine upkeep
• Pet policies
• Eviction terms
• Association rules to be followed by tenants
• Homeowners association dues and who pays for them

Draft the lease and have a real estate agent look at it and advise you accordingly.

• Protect the property with insurance

Protecting the property with the correct insurance policy is very important. Check with your agent to see if you will need a different policy if you are renting out the property as compared to using it as your primary residence. As a landlord, you need rental home insurance or fire insurance. It covers your home’s structure, and rental income loss. You are not responsible for the tenant’s belongings so you should encourage the tenant to buy renters insurance.

• Hire a management company

One benefit of using a property manager is emotional distance. Some tenants tend to take advantage of the landlord’s emotions. The property managers will take good care of the tenant, and they are sympathetic, but their job is to make sure the owner gets their rent payments.

Find a licensed professional, preferably in your local area. Real estate agents offer property management too, and you should check them out.

• Prepare adequately for evictions

Some tenants are stubborn, and they won’t move out without a struggle. You will need go through the proper process to evict a tenant, and you can’t just tell them to get out and throw their personal property on the street. You may have to go to court and you may need to get the sheriff involved and the sheriff can evict the tenant if necessary after proper notice has been given and the proper amount of time has passed. To find out what the rules are for eviction in your area, talk to a realtor and they will point you to the right resources for this information.