When it comes time for you and your family to move, it can oftentimes become a scary thought. All you can think about is how bad you want the moving days to be over so you can better enjoy your new home. This is how most individuals may feel when moving, so the common thing to do is to put your home up on the market and take the highest offer that comes in. However, there is another option that could be better for you in the long run. Consider putting your house up from rent! This can be especially good if you are looking for a second income or if you need to get out quickly. So to help you quickly turn your home into a rental property, we’ve got some great tips to help you do so.
- Make Sure All Personal Property Is Removed From The Home
To reduce the potential issue of having future tenants steal any personal items that may have been left behind, take it out! Unless you want to leave certain items for your tenants to use, take anything out that you may want back in the future.
- Decide If You Want To Be The Landlord Or If You Want To Hire It Out
Becoming a landlord can oftentimes become a struggle. Having to deal with all the problems that may arise with tenants and making sure everything is running the way it should, can become a hassle. To reduce stress, consider hiring a property manager to help manage the property. A property manager can take all that stress away while still allowing you to bring in your second income. Hiring Keyrenter as your property manager will provide stress-free regular inspections to protect and maintain your investment. You also won’t see any initial set up or additional marketing fees thrown at you that other property managers may have.
- Determine If You Will Need To Refinance?
If you are planning to purchase your next home but don’t have sufficient funds to afford the down payment, consider checking out how much equity your home may be worth. You might be able to pocket some extra cash to help with the payment of your new home as well as help with any cosmetic changes you may need to make to the property.
- Fix Anything That May Need Fixing
This step really doesn’t have to take lots of time or money. However, some repairs may be necessary. Some of which you should consider looking into may be, adding a fresh coat of paint to the walls, replacing worn carpet with a durable laminate, making sure plumbing, electrical and all other necessary functions are in operation, properly, and anything else you feel might be necessary. Doing these things can also help attract the right tenant you hope will fill your property.
- Select An Insurance Provider
When you begin to rent out your home, regular homeowner’s insurance will no longer be sufficient, you will need to have landlord insurance. Most of the time, if you choose to get this insurance through the provider you are already currently using, you can most likely get a better deal bundling your insurance as opposed to if you had gone out and went with a new company. Basic landlord insurance will typically cover building insurance for damage to structures on the property, property maintenance equipment that you own, and protection for sheds, pools, and other outbuildings. It should also provide some coverage for minor accidents or injuries that may happen on your property.
- Determine How Much You Want to Charge
It can sometimes become a challenge knowing what the right amount to price your rental property at that will include everything you will be offering. Start by checking out online evaluators to help you calculate rent costs. There are lots of free resources out there to help you do so. You can also reach out to a real estate agent, like us, that can help you determine the best cost to rent your home for. Make sure that when you are calculating out your cost, you give yourself some profit above the cost of running the property, unless you hire a property manager. As a general rule, however, landlords can typically charge about 0.8%-1.0% of a home’s value in rent. So if your home is worth $250,000, you should be able to charge $2,000 – $5,000 in monthly rent without a problem. However, this estimate is based on the location of the home and properties nearby that may be in the market.
- Determine Your Rules
It’s important for you to decide what you will be willing to allow at your property. Once you figure out these rules, stick to them and try not to be lenient to any tenant. Deciding rules in advance can reduce the risk of getting yourself into discrimination lawsuits and you won’t be bothered by tenants who constantly come to you with requests or exceptions to your rules. Some rules to consider may include, how many people you will allow to live in the home, whether or not you will allow pets, who will be responsible for the yard maintenance, who will be paying for garbage removal, what rules will be in place for property cleanliness, etc.
- Know The Law And Create A Tenant Application Form
The last thing you want to happen as a new landlord is to violate the law. So to help protect yourself from even more issues, get to know the law. You can simply do this by contacting your local housing department who can give you helpful information on what tenants and you will have as basic rights. It will also be important to create a tenant application form including information like name, address, phone number, employment information, and contact information for references. This will help you complete a background check to help you find the right tenant to fill your property. Just be sure to only include information you will want the answers to but understand the things you can’t ask before finalizing the form.
- Find A Tenant
Now that you’ve got all the necessary steps done to have your rental property in operation, it’s time to find a tenant! Begin by listing your property on any real estate site and be prepared to manage applications. Have you already considered hiring a property manager? Your property manager can make all the steps above easier as well as take on all your tenant applications. They can also manage all background checks to help allow for more time for other responsibilities you may hold. Contact Keyrenter for a great property manager that you know you can trust!