Renting out your property sounds like a good idea. Who would not want some extra income from their property? To ensure you do this and it goes smoothly, you need to keep a few things in mind. Renting out your property is not as easy as you make it out to be. Having some knowledge on rentals and what to look out for will help you make the right decisions for your property.
Demand for Rentals
Before you put up your property for rent, find out the demand for rentals in your location. You are most likely going to make less from your property if there is little demand for rentals. Apart from the demand for rentals, find out how much other rental properties are charging for houses in that area so you can price your houses right.
Fix Your House
Ensure you go through your home and see if its condition is the right one for renting. The difference between living in your own home and renting it out is, no one will live in it if the house is in bad shape. Take a look at the plumbing and wiring of the place before putting it out to let. You might also have to paint over some surfaces and replace appliances in the house. Fixing your house will increase its value so do this before anything else.
Market Your Space
Once you have the house in shape, you need to get the word out. There are various ways of doing it. The easiest is putting up ads on social media. While it might get you, tenants, it might get complicated with all the paperwork required. Using letting agents in London, for example, is the surest way to getting a good tenant.
They have been in the industry and will ensure you get the best agent for your apartment. The agents can also do a couple of other managerial tasks for you, so you do not have to worry about it. The only catch here is you will have to give them 8% to 10% of the rent each month. Do the math and see if that works for you.
Understand the Laws Surrounding Letting Out Property
Before you put your house up for rent, find out if there are any laws in your area preventing you from renting out. It will help ensure that the whole process is legal, and there are not issues that come with it. Take the time to come up with a Residential Tenancy act for your tenants. These rules will guide you in matters relating to the property and the tenants.
It will come in handy, especially regarding issues like inspections, rent collection, and contract terminations. Always have your tenants sign the lease before they enter the house.
Get an Insurance Policy
An insurance policy will come in handy for you in many cases, making it a vital part of this process. Even though you might have had a homeowner’s policy while using it for yourself, you will need to get rental home insurance to cover the property under the tenancy.
The policy will come in handy and cover any costs on the house, including medical expenses, in case of an accident at the property. These are all things that might not be covered in the homeowner’s policy.
Factor in the Various Costs
Many people’s common assumption is that renting out a property means you get to collect money every month without spending anything. The truth is far from it. You will incur so many costs when you put your property out for rent before you give your tenant the cost of rent, factor in all the cost that goes into maintaining the property. It is the only way to ensure you do not feel like it was a bad decision to let out your property since you are spending more than what you are earning.
Renting out property can be a great business venture if thought is put into it. Do not be in a rush to put up the property unless you are sure you have covered all the bases.
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