Many property owners consider the idea of renting out their houses to tenants. However, whether itâs for the benefit of gaining extra income or paying down your debt for the familyâs needs, becoming a landlord can be indeed a big challenge. It can even become big trouble when specific considerations arenât made. Whether youâve inherited property or your family have decided to live abroad for good, hereâs what you should expect when youâre planning to put your place up for rent, especially for families searching for new homes:
There are specific landlord-tenant laws you have to understand.
When it comes to becoming a landlord, the first thing you should do is to know and understand the landlord-tenant law. Most states observe specific landlord-tenant laws that can help rent your property out to tenants. Before doing anything, itâs essential to follow the procedures and processes about security deposits, the number of notices you have to give tenants when you want to evict them, and the extent of access to your property. By understanding the law, youâll be able to manage your rental property and your tenants properly.
You have many responsibilities as a landlord.
 After understanding how the law works, you need to figure out if being a landlord is a responsibility you can handle on your own. From staying on top of repairs and maintenance to collecting rent and looking out for your tenantsâ housekeeping skills, you have to understand all of these things to get started. So, try to ask yourself if youâre ready to perform all the responsibilities involved when deciding to rent your place out to other people.
Once youâve decided to become a landlord soon, start looking for websites like Gumtree Real Estate where you can post ads about your rental properties. That way, youâll get more prospects coming in to inquire about the rental.
 You need to prepare your property before renting it out.
 With several competitors in the market these days, you donât want to rent your familyâs property as it is since tenants tend to be choosy, especially if thereâs an increased availability of rental properties. Below are the things you need to do to prepare the place for renting and improve the overall look of the property:
- Clean your home and ensure that all appliances are in good condition.
- Give your property a fresh coat of paint if the existing paint starts to peel off.
- Make sure that the place is well-lit.
- Check the electrical and plumbing systems if theyâre working correctly.
- Make sure all windows and have appropriate locks for safety purposes.
- Ensure that your property is free of hazards, such that both your interior and exterior donât have unstable handrails or broken steps.
You need to set the right price.
Once youâre done with the preparations and youâve already determined your responsibilities as a landlord, then itâs time to set a competitive price for the rent. You can start by getting to know the rates of other rental properties in your neighborhood or community. As mentioned, tenants have a variety of rental properties to choose from. Thus, consider giving some good deals and be sure you pinpoint the best features of your place.
You have to screen potential tenants.
Once your property is ready to be shown, begin searching for the right tenants who will occupy your place soon. By renting out your property to them, it means you expect them to take care of the place and pay the rent on time without delays. Get the best tenants through the following:
- Collect references for prospective tenants and review their credit histories. The potential tenantsâ credit scores can be a helpful screening tool to determine whether to accept or deny a rental candidate.
- Do an interview with your candidates to ensure youâll be comfortable dealing with them.
- Perform a background check by checking references from previous landlords and employers.
Once youâve got the right tenant, discuss the reasonable security deposit youâre going to ask. From there, make necessary arrangements for the appropriate payment schedule.
Preparing a contract of lease is a must.
When you already find your tenants, you need to prepare a contract of lease to get started. Under these circumstances, you may opt to hire an attorney or a project manager to customize the lease. If you decide not to ask help from anyone, you can utilize the standard lease form that you can find on the Internet. However, itâs important to review the form and see if thereâs a need to tweak it to suit your situation. An example of a provision you may want to customize is whether you allow pets and the applicable rules youâre going to follow.
Conclusion
Renting your property out to tenants can be a massive undertaking. Itâs also the kind of business that youâre going to have for yourself and more importantly, your family, thus careful consideration is required. By knowing what to expect in the rental process, youâll get yourself in the right direction with the least amount of headache and best possible results. Not only that but you can also get to help some families looking for a new home within your area.
This is a collaborative guest post. The ideas and views expressed do not necessarily reflect those of Mommy Ramblings.