Around 36% of the 122.8 million houses in the United States is rented. With such a high volume of renters, you may be considering making real estate investments so that you can rent properties out.
Owning rental properties comes with a great deal of responsibility and there are several key considerations that you need to make.
So, before renting out your home, what do you need to know?
In this guide, we’ll talk you through eight effective tips for investing in real estate and then letting out a property.
1. Understand What’s Involved When Renting Out Your Home
- 1 1. Understand What’s Involved When Renting Out Your Home
- 2 2. Make Sure Your Home Is Ready for Renters
- 3 3. Consider Using a Property Management Company
- 4 4. Market Your Property
- 5 5. Carefully Screen Tenants
- 6 6. Make Sure You Insure Your Property
- 7 7. Prepare Properly for Evictions
- 8 8. Carry Out Routine Visits
- 9 How to Rent Out Your Home
If you’re renting out your property, you need to understand the commitment involved. You’ll need to maintain the property to a good standard, and you’ll also need to know how much tax you’ll need to pay as a landlord.
2. Make Sure Your Home Is Ready for Renters
Before you can even consider letting your property out, you need to ensure it’s safe and fit for renters to live there. Knowing about the local building codes is always helpful as it will ensure a property is fit for dwelling.
3. Consider Using a Property Management Company
A lot of work goes into renting out a property. Many people see being a landlord as a passive role, however, you’ll need to market your property, screen tenants, and deal with issues promptly as they arise. Hiring property managers can help you meet your commitments without personal stress.
4. Market Your Property
Once your home is ready for tenants, you can market it. You’ll want to do more than just put a ‘to let’ sign outside the door. Consider listing your property on listings sites and in the local newspaper.
5. Carefully Screen Tenants
Once you’ve found potential tenants, you’ll need to screen them carefully. By carrying out thorough background checks, you’ll be able to tell whether they will pay their rent on time and keep your home in good condition.
6. Make Sure You Insure Your Property
Things can go wrong with a rented property, and if there is any damage through fire, vandalism, or tenant neglect, having insurance in place will ensure you’re covered. Don’t just go for the cheapest options, shop around for the most comprehensive coverage.
7. Prepare Properly for Evictions
Unfortunately, on occasion, you’ll need to evict tenants that haven’t paid their rent or have broken the conditions of their lease. These need to be handled professionally and in line with local laws. Make sure you clearly communicate with your tenants at all times during this process.
8. Carry Out Routine Visits
Carrying out routine visits will help ensure your property is being looked after by your tenants. Remember to give as much notice as possible before carrying out a routine inspection, and always maintain your tenant’s rights to privacy.
How to Rent Out Your Home
Renting out your home is a major commitment. If you’re unsure of the steps you need to take, consult with a property management company who will be able to assist you at every step and take over the running of the property for you.
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