While bringing in a steady income, being a landlord can also bring huge responsibilities and unexpected situations like emergency repairs or unreliable tenants. Whether you do everything yourself or hire property management services, here are five things to consider before renting out your house:
Research: There is no alternative to research. Find out the average rent in your neighborhood and choose an amount that matches the local rent while helping you make a profit. Take things like the area of the property, number of rooms, the age of the house, etc. when choosing the rent amount.
Repair and Renovate: Potential tenants are more likely to choose a well-maintained house. Take the time to mow the lawn, trim the branches, replace broken windows and give a fresh coat of paint to the walls and the doors and your shutters a good cleaning.
Perform a Credit Check on Your Tenants: Running a credit check on your prospective tenants will help you get an idea about their payment history and if you should be renting your house to them. You could also hire a real estate and property management company to perform tenant screening and get referrals from past landlords.
Funds for Emergencies: Being a landlord means having to deal with all kinds of emergencies from a leaking roof to a broken window. Make sure you have enough funds set aside for such purposes.
Insurance: You may get tenants who end up damaging your property or causing an accident that requires heavy repairs and expenses. Make sure your insurance provides full coverage and legal fees if you take your tenants to court.
Being a landlord means learning on the job. Rental property management services can help you in the process with valuable advice and suggestions.