Many people consider buying property so they can rent it out for additional income. It is a method of earning more money; however, there are a lot of maintenance costs included. Another reason people would consider renting out their property is because they don’t want to sell as the value of the property has decreased.
There are many reasons why people would buy and rent, although it can be more trouble than initially anticipated. Let’s take you through five steps to make renting your property easy and ensure you follow all rules and regulations.
A Lot of Responsibility
Being a landlord can be very time-consuming and you must have the right contacts to help with the general maintenance of your home. Additionally, it can help pay your bills while generating some profit you can place in your back pocket.
Being a landlord on top of your day-to-day job is the hard part. Plus, things won’t run as smoothly as you think. You must keep up with house repairs to ensure they do not escalate. For example, if there is a leaking tap or pipe, ensure you attend to these as soon as possible.
To ensure maintenance issues are attended to immediately, you must visit the property every 6-12 months. That way, you are aware of any damages that may have occurred while the tenant was on the property.
It isn’t just property maintenance you need to worry about. You will also collect rent money and have a more expensive homeowners insurance policy.
Have Your Home Prepared For Renters
It is one of the first things you should do before renting your property. Tenants can be very picky so you must ensure it is an eye-catching property. It needs to be modern so the tenant enjoys living there. Additionally, the better you make your property, the more you can increase the rent in your area.
Make sure that a thorough cleaning is completed on your property. We advise getting professional cleaners to be used for this, as they will know what and where to clean.
If you are only partially renting out your property, ensure that this section of the property is separated from the rest of your property and is secure, IE, by providing padlocks.
Marketing Your Home
Marketing is something else that you will need to do for your home. Once you have your home cleaned, it is time to start marketing your property. Ensure you take pictures of the property that will help sell it and make people want to rent it.
There are terms and phrases that you can use to market your property. Granite, stainless steel, vaulted ceilings, hardwood floors, maple or any other descriptive words for luxurious materials in your property will help attract people.
The next thing you need to do is post your property on reputable websites that receive a lot of users each month. Consider reaching out to these websites to advertise your property as well. To ensure people are seeing your property.
Next, you should hire a property management company to do the rest of the hard work for you. You’ll have to pay them a small percentage of your monthly rent; however, it will save you a lot of time.
Work With Well-Experienced Professionals
Working with professionals is something else you will need to do, as this is your first time. There are many things you must think about, which is why you need professionals. They do this for a living at the end of the day so they know what is required. Discuss with real estate agents to ensure you follow tax laws and local property regulations.
In some scenarios, you could qualify for tax deductions but must understand which expenses can be deducted. Furthermore, there are some limits on how much you can deduct each year.
An attorney will also help with landlord-tenant regulations, depending on the state in which your property resides. They will also help you understand the community rules for your property. Finally, these attorneys can help with house rules and any emergency contacts for property renovation or maintenance.
Finally, Screen Your Tenants
One of the most important parts of renting your property is finding the right tenants. Tenants can be very difficult people so you must pick the right tenant. They need to pay rent on time and they cannot damage your property while they live there. Check their credit histories to make sure they pay off their debts. The last thing you want is tenancy fraud, where you must get investment fraud attorneys involved. Screening those tenants can be time-consuming but if you work with the right professionals, you can ensure you get the right people.