With the rental market, the way it is these days, the allure of renting out your home and buying another one seems more and more appealing. Some people decide that it would be more beneficial financially to rent out their home and buy another one. However, before you do this, there are a few things you need to do. This article will give you the inside scoop on what items will need your attention before renting your home.
- 1 Get A Home Inspection
- 2 Get Your Home Cleaned By Professionals
- 3 Check All The Smoke Detectors
- 4 Make Sure The Electrical System Is Safe
- 5 Get An Idea Of What Your Still Responsible For
- 6 Get A Rental Agreement Made Up
- 7 Ensure There Is Adequate Insurance
- 8 Set A Rent Price That’s Competitive
- 9 Property Management Companies
- 10 Conclusion
Get A Home Inspection
It is a good idea to have a home inspection done before you put your home on the market. This will give you a chance to find out what needs fixing and how much it will cost. The last thing anyone wants is for someone to rent their home, not realize that there are major issues with it, and then take legal action against you. A home inspection will ensure that your home is in perfect condition before you put it on the market.
Get Your Home Cleaned By Professionals
Clean your home professionally before you put it on the market. Having a professional cleaner go through every room will give you peace of mind knowing that there are no issues with dirt or grime anywhere. It’s also a good idea to have the carpets professionally cleaned. If you are worried about the cost, then look at Groupon first. You could find out that there are coupons available for your particular situation.
Check All The Smoke Detectors
Look at all of your smoke detectors and make sure that they are in good working order. You wouldn’t want somebody renting your home to be in danger in the middle of the night because there was no warning when their room caught on fire. Put fresh batteries in each detector just for added protection. You should also make sure the detectors are not too old. If they are more than ten years old, you might want to replace them with new ones.
Make Sure The Electrical System Is Safe
Another critical thing to do is make sure that your electrical system is safe. Read through the manual for your home’s particular electrical system. If you are not familiar with it, then have an electrician take a look at it for you, so you know what changes need to be made or if there are any issues with it at all. Doing this will protect you from any legal problems that might arise if there is an electrical fire in your home.
Get An Idea Of What Your Still Responsible For
Get a clear picture of what you are still responsible for after you have rented out your home. It is important to know what you need to cover in terms of maintenance and repairs. This will help prevent any problems from occurring later on down the road that might be costly, such as a leaky roof or burst water pipes that ruin your tenant’s belongings. Also, be aware of what your tenant is responsible for, including things like lawn care and shoveling the sidewalks. Doing so will help ensure that everyone is on the same page and that there are no issues between you about who is responsible for what.
Get A Rental Agreement Made Up
You will also need to have a rental agreement made up and ensure that both you and your tenant sign it. The agreement should include the length of the lease, rent payment amount, date it’s due, what utilities are included in the rent and which ones are not, and other pertinent information. Doing this will ensure that nothing is left up to chance and no disagreements later.
Ensure There Is Adequate Insurance
You will also need to make sure that you insure your home for renting, especially if you will have a tenant living in it long-term. Your current homeowner’s insurance policy might not cover accidents and injuries of tenants and loss of rent if something were to happen to your home. Talk with an insurance professional about adding a rental policy on top of your existing homeowner’s insurance that will protect both you and your tenant in the event anything unexpected arises.
Set A Rent Price That’s Competitive
You will also need to set a competitive rent price in your area. Search through different rental ads and get an idea of what other homes are renting for around you. You might want to use multiple sources, such as Craigslist, Zillow, and Trulia. This way, you can see if there are any discrepancies in the prices. You will then be able to set a rent price on the lower side while still getting a good amount of rent from your tenant.
Property Management Companies
You will also need to decide whether you want the help of a property management company or not. Your decision will depend on how much time and effort you have to spare and whether they will charge a reasonable fee for your situation. There are many reasons why using a property management company is a good idea, including professional eviction services, required maintenance tasks, screening tenant applicants, and collecting rent payments every month. So take the time to decide if this is something you will need or not.
These are important issues that some can easily overlook when in a hurry or just unfamiliar with what they need to do. So take the time to go through each one carefully and handle it. Knowing this information will help you avoid any issues later on and ensure that you rent out your home to responsible tenants for the duration of the lease period. Finally, note that this list is not comprehensive. If you have any questions about anything, be sure to ask an expert for assistance.