There could be any number of reasons why you need to rent out a property. Perhaps you bought a home with the sole intention of renting it out. Perhaps you need to move elsewhere, but don’t want to sell the home just yet. Or perhaps you want to travel for a few months, and want someone to help cover the bills. Whatever it is, you’re renting out a property. In order to make sure that this process works for all parties, there are a few rules you’ll want to follow. We take a look at them below.
Getting the Home in Shape
In order to attract tenants and get the best price for your property, you’ll want to make sure it’s in the best shape it can be in. If the property is in poor condition, then the pool of interested parties will be small. Sometimes, a little bit of effort can go a long way — changing things like the lighting and adding more appliances can help push the price up. When you’re making those small improvements to your home, you’ll want to think about the type of people you’re hoping to rent out to. Students will look for different things than a family, for example.
Finding the Right Price
One of the trickier aspects of renting out a property is finding the right price. You don’t want to rent it out for too low a price, because it could end up costing you money. On the other hand, you don’t want to put too high a price on your property, because you’ll run the risk of it sitting empty. If you don’t know what to charge, a good place to start is by looking at how much people are charging for similar properties in your area. Housing industry rental reports like this one from ABODO can help renters understand trends in the area they live in. This way, you won’t make the mistake of charging too much or too little.
The Right Tenants
It’s crucial, for your peace of mind and the security/standards of your home, that you take the time to find the right tenants. There have been many property owners who have been burned by unreliable or disrespectful people living in their homes. Make sure you don’t end up with a horror story of your own! Always take the time to conduct background and financial checks, and also to meet with the people. You’ll usually have a good idea of whether someone is trustworthy or not if you spend twenty minutes speaking with them. Of course, it’s always a leap of faith, but with the right systems in place, you’ll find that you get things right more often than not.
Finally, make sure that you’re staying legal. There will likely be local laws that you need to follow. It’s always a good idea to make sure you’re compliant before getting too deep into the rental process — it’s much easier to make sure you’re legal from day one, rather than somewhere down the line.