Homeowners rent out houses for various reasons. For instance, a household might have a vacation home they do not use throughout the off-season, or a couple whose children have grown might want to move into a smaller space but keep the old homestead. While economically profitable, renting a house increases a number of catchy legal and logistical questions. Homeowners must keep a number of hints in mind as they get ready to lease.
Before putting your home on the leasing market, consider just how much you’ll want to control to make it financially worthwhile. While renting out an unused house might seem like easy money, it still carries lots of the same expenses that have living inside, including mortgage payments, utilities, insurance, repairs and upkeep. Compare the prices of upkeep with what similar properties in the area are fetching to produce a competitive price.
Prepare Your House
While a home may appear livable for you, many residences require a lot of work to get ready for the market. This can include both upkeep, including minor repairs and touch-ups on the paint, and refurnishing with newer appliances.
Get An Attorney
When drawing up a lease for the property, make sure you consult a lawyer with experience in property law. While boilerplate rentals are available free of charge online, these will probably not comply with local laws. A lawyer can advise you on applicable local statutes and draw up an airtight lease arrangement.
Prepare for the Worst
When preparing for new a renter, draw up an inventory of worst-case situations and then prepare an inventory of alternatives. Consider what would happen in the event of a natural disaster, a theft or a fire. Are there any things you need to take from the house in advance? Additionally, ask your lawyer about your legal liabilities concerning the tenant’s actions. Should they act negligently or use the property to commit a crime, are you accountable?
Screen Tenants Carefully
When viewing tenants, remember Ronald Reagan’s old adage:”Trust, but verify.” Ask a tenant because of his employment history, references, as well as the names and telephone numbers of previous landlords–and then check them. Run a credit check and ask the landlords what kind of renter the person was.
If the duties that go with becoming a landlord appear too daunting, consider handing care of their property off to a management firm. In exchange for a commission, management companies will agree to select a tenant, keep the property and bear much of their legal responsibility for the rental.