In the United States, the number of people living in rental houses rose from 72.5 million to 83.2 million between 1996 and 2017.
The number of renter-movers declined from 24.7 million to 17.9 million in the same period. The reason for the sharp decline was attributed to high rental costs.
This indicates that rental housing is always in demand. Doesn’t it?
People tend to be attracted to the idea of making cash from real estate investing, but the problem is that not many can afford a rental property.
The good thing is that you can quickly become a real estate investor and make a good income by renting out your house.
In this guide, we share top tips to rent out your house to renters. Get your house rented easily and receive great reviews by following these tips!
Prepare Your House
Understand that in a down market you’ll hardly rent your house as it is. Tenants can sometimes be attentive and selective as they’ve got their expectations.
So, if you’re renting your house, you’ve got to make sure that it’s thoroughly cleaned and that the appliances are in a perfect working condition.
If you wish to rent out a room within your house, make sure that it’s separate from the rest of your house.
Once your home is straightened up, you have to come up with a list of things that makes it appealing.
Take note that desirable features like a garage, air conditioner, dryer, and washing machine makes your house attractive to prospective customers.
You should consider using rental terms that help “sell” your property. Some of the words that can help you easily get a renter include; ”hardwood floors,” “vaulted ceilings,” “state-of-the-art,” and so on.
Do Your Homework
Before renting your house, you have to get to know your market. Check out neighborhood rental signs, online resources, and newspapers for similar homes in your local area and how much they’re letting for per month.
If you set your tent too low or too high prospective clients may steer clear. You have to think about your target demographic and consider who your property is best suited for – single professionals, students, young families?
When you’re done with your homework, set a reasonable price and aim to keep your house occupied at all times to minimize rental voids.
Find A Good Tenant
You can always find tenants by spreading the word through coworkers, relatives, friends, or advertising in local newspapers.
When you find potential tenants ask them to fill out an application form with the necessary information such as previous landlords and references, salary, employer, and their full names.
Don’t forget to ask for their social security number and signed authorization to check criminal history and credit reports.
Write A Lease Agreement
A lease agreement is important because it ensures that you, as a landlord, and your tenant understand your rights and obligations.
Therefore, it has to spell out the amount of rent to be paid, where it’s to be deposited and how. It also has to state the due date and any applicable late fees.
It’s always advisable that you clearly state the fees charged on bounced checks and security deposit.
A good lease has to comply with fair housing as well as insurance, tenant, and rental laws. Since the laws differ across the US, it’s best to work with a local real estate lawyer.
Property Management
When turning your house into a rental property, you have you understand that the key to real estate investing is property management.
Real estate management requires organization effort, time, and attention to details.
While some investors may be tempted to manage their own investment property, hiring a property management company is important.
These professionals will handle all the aspects related to your rental property, including handling repairs, collecting monthly rent, advertising the investment property, and finding a tenant.
Insure Your House
It’s vital that you protect your house with the right insurance policy. You’ll need a different policy if you’re using as a permanent residence versus if you’re letting to a tenant. As a homeowner, your insurance covers your belongings, damages and the structure.
If you choose to become a landlord, you’ll need to get rental home insurance. This policy takes into account the loss of rental income, medical expenses, legal costs, and the structure of your home.
Given that you aren’t responsible for your tenants belonging, you should advise them to get renters insurance.
Understand Property Law
Before renting your house as an investment property, you need to consider whether the laws in your real estate market allow homeowners to rent their house. This will help you conduct your investment in a legal way.
Some of the things you need to know before renting a house include an understanding of the residential tenancy act as well as the tenancy agreement to termination, rent collection, and inspection.
It’s also wise to consult a certified public accountant to check on all the relevant tax codes relating to real estate investment properties.
Know What’s Required To Rent Out Your House!
If you’re planning to rent out your house you’ve got to start by preparing it for tenancy.
This means that it should be clean and all the appliances are working. If you’re renting a room within your house then it’s got to be separate from the rest house.
Make sure that you’re conversant with the rental prices within your area. You can do this by checking out newspapers, online resources, and rental signs.
This will help you set an attractive price so that you don’t end up losing clients.
If you find potential tenants, you have to ask them to fill out a basic application form, but don’t forget to ask for their social security number so that you can check their credit report and criminal history.
Managing your property can be overwhelming if you do yourself.
So, you should consider hiring a reputable property management firm to handle repairs, rent collecting, and find tenants.
Are you looking to diversify your investment? Check out our blog to learn some of the factors to consider when buying a commercial property.
