Renting out your property is one of the best advantages of being a homeowner. With many teenagers growing up and adults moving from one city to another because of their careers, homeowners have been benefiting from it. For many property owners, pride and ownership are just enough. Landlords, on the other hand, take advantage of the opportunity and dream higher.
Although, being a landlord is no easy job since it involves more money and the property you’ve worked hard for. It can be more stressful, yet rewarding, to rent out your house or apartment and be able to confidently manage the property you own.
There is the right time and place where you can rent out your property. Owning an apartment near train stations, bus stops, universities, and the city proper can be a huge advantage for you. You can still rent out in suburban areas, but it’s less likely to thrive. Then again, you cal rent it out as a vacation house, especially if you’re in an area where annual festivals happen.
Treating Your Rental Property as a Business
It may not be your priority job, but renting out your property is still a business and a source of money. It’s only right to remain professional, keep your finances organized, and screen potential tenants before letting them move in.
Before you proceed, you must coordinate with your trusted mortgage company if you haven’t paid off your home loan. You have to comply with federal, state, and local laws in order to conduct a peaceful and useful business. Real estate and rental investments have regulations to keep everything in order.
Protecting Yourself From Liability
As a property owner, it is only your right to protect your property from potential accidents or liability claims. Investing in landlord insurance is a safe way to do so. This will help you when unwanted incidents occur, like theft and home maintenance, such as pipe or electrical issues.
If you haven’t purchased insurance, it’s also just right to require your tenants a security deposit before they are allowed to move in. In order to do this right, you must first check the utilities if they’re functioning properly and free from defects and damages.
Finding Good Tenants
Everything is online nowadays so creating an online rental listing for your property is a good way to find tenants. Inform them of the rent price, the address, number of bedrooms and bathrooms, amenities, and nearby popular areas. Add more information if you’ve just renovated the place or if it’s in perfect condition for tenants to move in anytime. It’s also best if you upload clear photos of the rental.
Do tenant screening to know who will most likely pay rent on time and take care of your property as their own. Accept tenants who are willing to abide by your terms and conditions as long as they’re reasonable.
Determining How Much Rent to Charge
To find the right rent price for your property, you must first learn how to set the right value and research your market to know what a fair price should be. Setting a price for your rental property has something to do with your location. Also, keep in mind that this affects your expenses as well, which is why you have to keep everything organized. Including your mortgage, taxes, insurance, and HOM fees. Variable expenses include utilities, repairs, and improvements.
The amount of your rental price is supposed to be a percentage of your house’s market value. You also want to consider what other landlords are charging for similar rentals in your area. An unreasonable amount will make you struggle to find a renter who’s willing enough to agree with your terms.
Hiring a Property Manager
This is a perfect option if being a landlord isn’t your primary job and you have a full-time career. A property manager will save you time and hassle involving marketing, collecting payments, and dealing with tenant issues. A competent candidate is able to manage several rental properties if you have over one rental.
Even if you have a property manager, you, as the owner, are legally responsible for maintaining a habitable home for your residents. Your property manager will help you solve anything beyond your control and may have to take enormous responsibility.
Renting out your house or apartment has its perks. Having an additional income is a given. Since tenants pay you rent, you get to use it to pay off your mortgage. Also, you can have peace of mind when others rent your property instead of just leaving it empty and open to vandalism and squatters. You have the option to move into it when that time is right.
