Homeowner and Landlord: Set Up Your Rental Property
Interested in becoming a landlord?
There are many reasons homeowners decide to rent out their home rather than sell it – maybe you’d like to keep the home for future generations, maybe you are temporarily moving for work, or maybe you’d like to wait for the market to turn in your favor – whatever your decision, it can be a profitable experience for you!
Here are some of the ways you need to prepare your home for future renters:
You’ll need to check that all appliances are safe and in working order, the key or lock pad to enter your home is secure and accessible, and the house is clean.
Your rent needs to be comparable to what is in the market. Check out Redfin’s Rental Estimate Calculator for a good idea of what your home can go for.
You’ll need to consider covering the costs of your:
- Property Taxes
- Funds for maintenance (since you’re the landlord, you’ll be the one to fix anything!)
You’ll want to create a lease agreement for your future tenants to sign and abide by. Have your lease include:
- Length of the lease
- Security deposit amount
- Rental due date and financial consequences for late or missed payments
- List of names for all tenants
- Policies about any pets, painting, noise levels, smoking, etc.
- Eviction terms
- Consequences for damaging the property
Be a Fair Landlord
Overall, renters will want to sign with someone who they believe is fair and reasonable. It’s important that you have open and good communication with your future renters, as well as quick response times (especially if there is a maintenance emergency!).
Be sure to check out the rest of Alliance Title’s Blog for more real estate tips and tricks.