How To Rent Your House | Robert Clayton Southlake

Robert Clayton Southlake: Many people mull over the idea of renting out their homes. They may want the benefit of extra income to save money or pay down bills, or they may choose this method as a way to wait things out until the economy improves. The motives are plentiful, but it’s possible for this plan to become more trouble than it’s worth when appropriate considerations aren’t made. Here are five steps that will get you going in the right direction.

Understand The Responsibility Involved

First, you must determine whether being a landlord is an obligation you can even handle. The benefits of renting are numerous, such as the ability to deter the vandalism that often plagues an empty home, the ease of tax breaks and the ability to generate income that covers the bills and possibly even creates a profit.

However, being a landlord is also one more responsibility you’ll need to fit into your life, and it’s safe to assume that things will sometimes fail to run smoothly. You’ll need to stay on top repairs and maintenance, collect rent, dole out more for your home insurance policy and try to avoid creating a less appealing home for potential buyers by keeping an eye on your tenant’s housekeeping skills.

Prepare Your Home

In a down market, you won’t be able to get away with renting out the home as is. Tenants are more attentive and choosy in a down market because of the increased availability rental homes, and their expectations are much higher.

Prepare for the new tenant by thoroughly cleaning your home and making sure any appliances are working and are in good condition.

If you’ve decided that you are renting out a room or area within your house, make sure that you can secure that area from the rest of your home.

Once the house has been straightened out, develop a list describing what makes the house appealing. Take note of those commonly desirable features such as a washer and a dryer, air conditioning and garage. Use rental terms to help “sell” the property. Next, post an advertisement of the home on reputable websites. Posting in local newspapers is also an option. However, most people find listings online.

Hire Professionals

Renting out your home may seem like a simple task, but it’s important to talk with attorneys and other professionals to make sure you are abiding by tax laws and local property rules as a result of the new status.

Set A Competitive Price

Set the cost of the rent by learning what other rental properties are going for in your neighborhood and community. Remember, potential tenants will be scouting around for deals, so set the rent at a competitive price and make sure you highlight all the most valuable aspects of your home.

Screen Tenants Carefully

Start looking for a tenant as soon as your property is ready to be shown. Then, choose your tenant very, very carefully. You need to be able to depend on this person not only to pay the rent on time, but also to keep your home in good condition. Also, if the person is someone you may be cohabitating with, learn their habits so you won’t run into any nasty surprises.

The Bottom Line

Renting a home to a potential tenant can be beneficial for both parties — but only if homeowners take the time to address and prevent the potential pitfalls of this option. After, all it’s still your house.

Originally Posted:https://www.investopedia.com/articles/mortgages-real-estate/10/renting-out-home.asp#ixzz50MRfKdFA