Renting your own house is a great idea to produce passive income. It can be better to rent out your home instead of selling it especially if you want to make a little money off of your home and prices are lower than you’d like today. While there are many benefits of renting a house, a lot of things also need to be given consideration. Check out our 5 tips for renting out your home:
1. Get ready for renters
One of the biggest challenges is making sure your house is marketable and has the right exposure to gain prospective tenants. Tenants are choosy and oftentimes don’t give a second thought to listing. Many people look at rent-to-own houses because they want to find a dream house without the upfront commitment. Similarly, as a future landlord, visit with a realtor who can put you in to contact with potential tenants.
You will be required to show your house to realtors and maybe even take pictures. Clean your house thoroughly and consider staging and/or updating depending on your market.
2. Market your house
Many landlords think they have hired a real estate agent and their job is done. However, this is never enough. You need to make your house appealing to people who are seeking a house to rent. Marketing enables you to make the best features of the house prominent.
Make an attractive advertisement of the house and post it on reputable and popular websites. Social medial marketers can be hired for this purpose as well.
3. Screening potential tenants carefully
During the process of renting the house, you will show your house to potential tenants. Not every person who is willing to pay you the amount of rent you have specified will be a good tenant. Consider someone who will take good care of your house.
Screen every person who wants to be your tenant. Check their record and credit history to determine if they are suitable candidates and provide yourself with some level of comfort.
4. Know your rights
As a landlord, you have several rights and responsibilities. You will always be reminded of your responsibilities (by your tenants), but you need to know your rights. Research, consult with a lawyer if necessary, and any other financial help you may require.
5. Prepare an agreement and protect your rights
After you have got enough information about your rights, take the necessary steps to protect them. Prepare an agreement of tenancy in which you will specify all your rights. However, don’t forget the rights of the tenant and any specific laws for your area. The pandemic of 2020 may have changed the rules substantially so make sure you perform lots of due diligence before jumping into being a landlord.
We hope you enjoyed our partner’s 5 tips for renting out your home. Check out some of our other great content:
- Can you bring some extra class to your home?
- Easy home improvement projects
- Not quite ready for passive income and need some budget help? Check out how to stop living paycheck to paycheck.
