A lot of homeowners nowadays are considering renting their properties, not only is it a good way to earn money, especially if you aren’t sure if you want to sell your old home, it’s also a good investment deal! But renting a home is not all fun and games, it’s serious work so you might want to consider some important factors before renting your old house!
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Is It Worth It?
If you are considering going into the rental business, you want to take a good look at your property and see if it’s even worth pursuing that path. Firstly, you need to figure out if your home is a profitable rental property in the first place, and this means looking at the stats, the neighborhood, are there any schools or businesses around it, and things like that that could be appealing to people. Some houses are easier to rent than others, due to their location, size, and overall demand for renting, so it’s certainly a thing to consider!
The State of the House
Another big thing to consider is the state of your home, are you renting a really old house with a lot of issues, or was it recently renovated? This is a crucial factor that will either drive tenets in or drive them away, especially if the rent is too high for a shabby place. Make sure to check up on the condition of the home, before you even think about putting it on the renting market! Do a little bit of renovation if you need to, freshen up the paint, make sure that the plumbing and electrical systems are fine and working, those are all really important selling points to every tenant!
Know the Law
Obviously, renting a home is much more than just letting someone live on your property for a monthly fee, the law needs to be involved! Just to be sure, you need to know the ins and outs of your responsibilities as a renter, to yourself and your property, if any accident were to happen, the only thing that can save you is the legal backup! So make sure you get your lawyers involved or at least have some sort of insurance that’s backing you up! It’s better to be safe than sorry, this way you won’t lose any money, time and effort!
Property Management
Again, renting a home is not all fun and games, there is a lot of planning and organizing that needs to go down, it’s much more than just signing a few papers and coming to gather rent every month! You need to be capable of a few things, to look after your rental property, to maintain a good relationship with your tenants, to balance finances – this is the only way you’ll be able to call your renting a success! It can go downhill real fast if you are not organized, especially if you are moving to a different city or state, you want to be able to handle your job as a renter!
Be Reasonable With the Cost
Sure, as a renter, you want to get the best out of your property, right? With all the costs that go into property management, legalities, and similar, you want to be able to earn money back from renting! But, all things aside, you need to be reasonable with the cost and take everything into consideration, the state of your home, the neighborhood, and the fact that people won’t be able to pay rent and sign a lease at a ridiculously high priced property. Everything has to be in balance, try speaking with a financial manager or someone who is experienced at renting to figure out the right price!
Finding Good Tenants Is Key
The law somewhat protects you, you do have rights as a renter, but it makes all the difference to have good, proper tenants instead of someone who will make problems. That’s why it’s crucial to find the best tenants for your property, it’s not only going to make your life much easier, knowing that you left your property to someone trustworthy, but it will also prevent you from losing money in the long run. Accidents do happen, but after hearing so many horror stories of ruined houses and tenants on the run, you want to make sure yours is a reliable person!
At the end of the day, the process of preparing your home for renting, and making a deal with the right person, is exciting and nerve-racking, but like any other investment – it can be extremely rewarding! As long as you follow the guidelines and plan everything out, you’ll have a steady income from your old home in no time!
