There are many reasons for using your property as a rental. Some get a property as an inheritance that they don’t wish to sell but can’t move into it either. While others have their property on the market but can’t sell it at the value that they want. And many like to have more than one income stream by becoming a landlord.
Regardless of the reasons, you need to get your house ready in order to put it out for rent. Here are some steps that you need to take before you start looking for tenants.
Take Out Insurance
You need to take out insurance before you rent out your property. Since you have people on your property, you take on some degree of responsibility for their safety. There could be an incident like a tree falling on the house or a gas leak that causes an explosion.
If you bought the property for rental purposes only, any extensive damage may make it unsuitable for renting out. If you don’t have insurance, you will have to pay for the repairs out of your pocket which most people can’t afford.
It is best to go with landlord insurance that combines property and liability insurance.
Get Rental Permits
There are certain permits that you need to acquire to operate your house as a rental property. Since permitting requirements vary by municipality, you can check with the city hall to see which ones you actually need.
Usually what happens is an inspector will come to the house to check for safety hazards including heating, electrical wiring, emergency exits, and other safety concerns. They will provide you with a report and notify you of any changes that need to be made to make your rental property suitable.
Repair and Update the Home
You will need to make updates and repairs to make your property appropriate for the tenants to live in. Make sure that it is clean and freshly painted. Replace anything that looks quite outdated.
You don’t necessarily have to go overboard with the repairs. Make some simple changes around the house like replacing the door knobs, changing the handles on kitchen cabinets, and the faucets in the bathroom.
If you are worried about the tenants not paying rent on time despite you making all efforts for the house, you can apply for guaranteed rent schemes. It will ensure that you receive rent on time each month without any delay.
Hire a Property Management Group
If your rental property is far from your residence or you want to free yourself from the stress of collecting rent and maintaining the property, then consider hiring a property management group. They can help with paperwork, make repairs, handle communications with the tenants, and ensure guaranteed rent for landlords.
Such companies often charge around 10% of your rent for their services. A property management group will also help you with any legal process that is associated with the eviction of tenants. With a company working on your behalf, you can rest assured and carry on with your life without worrying about rent.
Screen Tenants
The criteria you use to screen tenants for your rental property is up to you. Determining a good tenant can be challenging. Many landlords require a credit score of a specific threshold, clean background, and at least one reference from a former landlord.
Some might require their tenants to earn around two to three times above the monthly rent so that they have no problem with paying rent. Whatever method you use for screening tenants, make sure that you apply it uniformly to all of them to avoid discrimination.
