Great Advice For Home Rental

Introduction

If you have to relocate from your existing house for work or other reasons, but don't want to sell the property now, consider home rental as an option that has many advantages. Before you make the decision to do this, it is wise to talk with an accountant and tax advisor to verify what type of impact home rental will have on your current and projected finances. When you make the final decision to go ahead with renting out your home, you have several choices to make about what kind of a landlord you will be. These choices will be influenced by how far away you will be living and level of hands-on involvement you want to have in maintaining the home rental property. If you decide to handle everything yourself, there are several tips that can make you a financially successful and less-stressed property manager.

Step 1

Be diligent about paperwork when you do a home rental transaction. Take professional precautions to protect your property at every stage of the rental process, starting with how you advertise the rental's availability. Prepare an advertisement for online and newspaper publication that lists the basic details of the neighborhood, the house and the price. Do not give the exact address until you actually speak with the prospective renters. Make sure you have the proper documentation for the home rental prospects to fill out an application. You will want to do a credit check, so make sure you have made arrangements with a credit agency or bank to complete the process. When you decide which renters you wish to have move into the house, do not make any moves until you have them sign a lease. Standard lease templates are available online to print out. If you have never been a landlord before, you may wish to ask a lawyer to review the lease document for any pitfalls before both parties sign.

Step 2

Make sure the home rental property is completely free of all furniture and personal property by the date your renters are to take possession. Ensure that the house is in excellent repair and that it is spotlessly clean. Take photographs of each room from many angles. If there is a lawn, yard, garden, garage or outbuilding included, take photographs there, too. This will ensure that you have a visual record that you can check against when it comes time for the renters to move out at the end of the lease period. Any damages may be accurately reported if there is a photographic record for proof. Have a move-in checklist that the renters can sign off before you give them the keys. This list should include the fact that all the appliances and mechanical units are in good working order. 

Step 3

Set up a schedule to routinely check on your home rental property. Make sure you know the laws in your state for inspections. In some areas, landlords are allowed to enter every few months as long as they give the renter sufficinet notice. In most cases, if you have done your pre-screening well, you may be comfortable with just a drive-by or an occasional phone call to make sure everything is fine. If you move far away from your home rental property, deputized a nearby family member or close friend to handle any inspections and emergencies that may arise. If that is not feasible, contact a property management company to handle the home rental issues on your behalf if the need should arise.

Tips

Maintain a business-like relationship with the people who move into your home rental property rather than attempting to develop a friendship. This stance will help head off any potential for hurt feelings or damaged friendships if you are ever in the position where you need to enforce the terms of the lease agreement.

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