If you own a home, you will likely have to decide whether or not to rent or sell your house one day.
It is always a good idea to clean and make repairs to your house before you rent it out. A buyer who purchased a home as an investment and has never lived in it might not have to prepare in the same way as someone who is moving into a home filled with memories. Moreover, property owners must also take care of necessary legal requirements as well as prepare their homes physically and emotionally.
In order to decide whether to sell your home to a renter, there are three things to consider:
- Check your loan terms to see if you can rent with a current mortgage. In order to rent your home after receiving an FHA loan, you need to live in it for a year first. In the event that you are buying a home purely for rental purposes, you will need to inform your mortgage lender.
- If the house doesn’t rent quickly as you hoped or unexpected expenses arise, you will need to have three months of expenses saved up.
- Choosing a property management company could be a wise choice for you. Managing property is a complicated process that property managers handle for you.
Read on for more information.
9 Best Ways to Rent out a House
1. Get an inspection done
Inspect your home thoroughly when it is empty and fix any major problems. Be sure to fix potential problem areas such as roof leaks, clogged gutters, driveway cracks, leaking faucets, and burned-out light bulbs. Make sure your floors are in good shape.
Moreover, it is common for mold to grow in houses, which can pose serious health risks. This is because mold reproduces by spreading spores. Mold can cause respiratory issues, aside from producing irritants and allergens.
As soon as you notice signs including mold odor, dark stains, condensation, or water damage, you should look for a certified mold testing expert near you for an immediate fix.
2. Make safety a priority
Tenants will feel more at ease if they have a safe place to live. If you’re renting out a portion of your home, secure and separate the rental area from the rest of your home. Ensure smoke detectors are in good working condition. Equip the kitchen and each floor of the home with a fire extinguisher.
3. Do the math
In order to ensure that you can turn a profit as a landlord, you’ll need to calculate a few things:
Set a reasonable rent for potential tenants. Tour comparable properties and compare features. Determine monthly rent. According to industry standards, a tenant’s rent should be 1% or more of the property’s purchase price after repairs, which is often followed by landlords.
4. Hire a property management company
You can choose how much involvement you want in the day-to-day operations of the property. Take this on at your own risk and be prepared to be contacted at any time of the day (or night). Consider hiring a property management company if you do not live near the rental property or would rather not handle the responsibilities of being a landlord.
Be sure to check the laws in your state if you live in a large apartment building like the apartments for rent in Orlando. Be aware of fees for their services whether you use a property manager or a property management company.
Generally, property management companies charge 8% to 12% of the monthly rent.
5. Publicize your rental property
A good idea if you’re a new resident of the area is to hire a real estate agent. The agent’s expertise may allow you to gain a competitive edge, in addition to promoting your vacancy so tenants are aware it exists.
6. Do a final clean up
Having a dirty apartment is one of the biggest turn-offs for potential renters. It is recommended to clean the windows, the floors, and the blinds. For removing stains from the carpet, you should shampoo it. It is recommended to paint the walls with a neutral color in order to make the rooms appear brighter and cleaner.
7. Protecting your emotions
If your home holds many memories, letting someone else live in it can be a huge adjustment. In order to prepare a home for rental, it is essential to declutter personal items, family photographs, and favorite souvenirs. Prospective tenants want to imagine the contents of your house as they would in their own home. You can preserve your memories by packing away personal items. It may be easier to miss the space once it looks less like yours.
8. Examine your appliances and furnishings
Keeping your appliances and furnishings clean is important. Do not leave valuable furniture or fixtures in the house if you don’t want them damaged or stolen. Ensure everything you provide is in working order if you are furnishing a home.
Clean your appliances inside and out if you are providing them. You may be able to boost the rental price if the home offers appliances, but it may cost you if you need to repair or maintain the appliances frequently.
9. Select the right tenants.
When you have identified a potential tanent, ask them to complete an application with their name, employer, previous landlord, and references. Also, make sure to note their Social Security number and obtain their written consent to check their credit reports and criminal history. Legally, tenants and landlords have rights that vary by region.
Renting a house is a time-consuming process. Make sure you run the numbers carefully before deciding whether a property manager is a right choice. If you intend to market the property, you’ll likely need to spruce up the home to boost its appeal. Check your lease for legal requirements and thoroughly vet prospective tenants. Tenants will be happy when you strive for an open line of communication with them and are accessible when things go wrong.