Our current economic situation has made it extremely difficult for people to save enough money to buy homes. Currently, more U.S. households are renting than at any point in the last 50 years.
While this is likely bad news for our economy overall, this demand for home rentals is a boon to homeowners looking for a passive source of income. If you're thinking about renting your home, however, there are a few things you need to take into consideration.
Below are 7 tips you should heed when placing your home on the rental market.
1. Screen Your Tenants
Your experience renting your home will only ever be as pleasant as the quality of your tenants. Whether you're looking for a long-term sublet or a brief summer rental, you need to find quality tenants.
To do this, you should spread your net wide by using various listing sites like Airbnb, Craiglist, Streeteasy, or Zillow to find tenants. You might also want them to submit applications detailing their income, a cover letter of sorts, and references from past roommates or landlords.
2. Draft a Lease
You should also solidify your rental agreement with a contract no matter the length of the rental. This contract gives legal proof of rental rates, tenant obligations, and liability when it comes to maintaining the property, etc.
3. Get Rental Home Insurance
On top of that, you should also get renter's insurance. This way, your insurer will be able to cover the cost of hypothetical damages before you can successfully sue your tenant for damages.
4. Hire a Property Manager
If you don't live near your rental property, hiring a property management company will save you a lot of money and a thousand headaches. A good property manager can do nearly all of the legwork for you.
They can manage the cleanliness and functionality of the property, as well as screen tenants, advertise vacancies, and sign leases.
5. Set a Competitive Price
The average cost of rent varies widely nationwide. In Brooklyn, for example, rent for a 1-bedroom apartment can go for up to $3,800 a month. So you should do some investigating of rental rates in your area, so you don't sell yourself short or gouge tenants.
6. Hire an Attorney for Evictions
You should always be prepared for the worst. When it comes to renting, that means evicting tenants. In order to do this legally, and effectively, you should hire a lawyer to handle issues like these.
7. Happy Tenants, Happy Renter
To make the rental experience beneficial for both you and your tenant, you should be attentive to their needs. When something breaks, make sure to repair it promptly, and keep the grounds clean.
The last thing you want to do is get into petty feuds with your tenants, so try to keep them happy.
Ready to Begin Renting Your Home?
With these 7 tips, renting your home will be a breeze. If you're interested in hiring a property management company, consider contacting us for more information. We'll provide the comprehensive support you need to make your rental experience fantastic.