Renting your property is said to be a great passive source of income that you could try out. Apart from not having to have an active part in the process, you could get a good amount of money every month which you could use for your daily expenses or your savings. In this way, you can generate additional income you could put into whatever purpose you can think of.
If you have a property ready for occupancy, you might ask if can you rent to yourself to save on money. As it’s not an advisable solution, you should look for other people who can rent your property instead.
However, if it’s your first time putting up your property for tenants, there might be things that you’re not aware of. Listed below are some helpful tips for renting out your property:
- Uphold Property Safety
Ideally, you should treat your rental property as a business. It’s advised that you look after it with care by ensuring that it’s safe and adheres to the safety protocols mandated by the law. In this way, you can prevent any legal actions or complications, especially in the event your tenant notices something wrong with your property.
As you rent out your property, you need to ensure that everything feature is functioning properly. You can begin to test the quality of your smoke and carbon monoxide detectors. You should also check your vents and ensure that there are no debris, moisture, and other factors that could raise health concerns.
When there’s something faulty with your property, have it replaced or repaired promptly especially if your tenant’s safety comes into the picture. Moreover, you should also practice regular maintenance and checkups to prevent any further damages moving forward.
- Price Your Property Right
As you make your rental property available in the market, you should price it appropriately depending on your home’s quality, appearance, features, and location. In this way, you can guarantee to capture the right audience willing to rent your living space. While it might be tempting to price your property high, it won’t attract many potential tenants, especially if your asking price is comparable with a monthly mortgage.
You can research the prices within your neighborhood and adjust accordingly depending on the size, number of rooms, and year you had your property renovated. Moreover, you should also keep the other payments in mind, such as your insurance fee, HOA (homeowner’s association) fees, property taxes, and mortgage payment. As you add everything, ensure that you still earn enough for yourself to keep.
- Enforce A Tenant Screening Process
Even if you’re not living with your tenant, you should always create a candidate screening process so you can ensure that you won’t be dealing with a lot of problems as they start to move into your property. In this way, you can fully assess your renter and put yourself at peace that they will honor the lease agreement between the two of you and take proper care of your property.
Ideally, you should check the tenant’s rental background by asking for references from their previous landlords. Moreover, you can also examine their criminal background and other publicly available relevant information. As you speak with their former property managers, you should ask them how they are as a tenant and if they pay their monthly dues on time.
- Consider Various Payment Methods
If your property is far from your home, you might want to consider collecting your payments online. In this way, you don’t have to travel to your tenant’s house so that you could get your monthly payment, wherein you can conveniently wait for it to enter your online banking account. With this, you can save time and other valuable resources.
Apart from collecting payments online, you may want to consider post-dated cheques wherein your tenant will write you a check dated every month during their contract duration. In this way, you can just immediately convert the cheque into cash when the said date comes, preventing you from visiting the property every month just to personally collect rent.
- Have A Legal And Written Agreement Ready
Even if you’re renting your property with someone you personally know, you should always have a legal and written agreement about your rental terms including the rules they must follow as they become a tenant and others. This will help prevent any possible legal issues if there’s a concern that might happen in the future.
In your written contract, you should include the rental fee and the duration of their stay. Moreover, you should also add notes about the things that they can’t do inside your property such as repainting the walls, changing the floor layout, holding illegal business, and so on. You and your tenant should sign at the end of the contract which indicates that you both agree to the terms and conditions stipulated in the document.
While renting your property is an excellent source of income, you should always try to maximize your potential earnings along with ensuring your property’s condition and longevity. While it might be convenient to rent your property to someone you know, having a written agreement will help to prevent any future complications that might arise. Most importantly, you should always screen your candidate tenants to save yourself from any headaches when it comes to monthly rent collection and other concerns.
TIME BUSINESS NEWS