If you own a home that you would like to rent out, there are several essential aspects you should consider. Living in a home and renting it out are two completely different things, and the latter requires a bit more formalities and legalities. Renting out a property is a great way to have a steady monthly cash-in, but at the same time, it also implies having a certain level of responsibility. Keep reading to learn more about the 5 useful things to know before renting out a property.
Besides a few conditions you need to fulfill before renting out a property, there are also some things that are not obligatory but can come in handy. First of all, when you decide to rent out a property, it needs to be livable. You can decide whether you want to rent it out furnished or not. Then, you should make up your mind about the rent money. It will depend on a few factors, such as the location, the size, the layout, whether it’s furnished, the market, and so on. It would be advisable to draft a tenancy agreement to state both your and your tenants’ responsibilities clearly. Additionally, it works great as a protection. And finally, you should also consider how you are going to advertise your property and have people find you.
Livability
When you live in a house, and something small breaks, sometimes you need a little time to get to it. Or if it’s not too big a deal, you find a way around it. However, when it comes to renting out a property, this isn’t the case. Before you make up your mind about renting out a property, you should check thoroughly whether the property is in good living conditions.
That means that you should check everything, from pipelines, the paint, roof, wiring, and taps to drainage, switchboards, fittings, and other things. It should all be functional. It would be best to make a checklist (or download one) and go one by one. You should repair everything that is not in working condition or that doesn’t look appealing, for a matter of fact. Don’t forget to take a good look at the yard as well and do what’s necessary.
Rent money
The next item of the order you should consider is how much you are going to ask for rent. There are a number of factors that affect the formation of prices. For instance, some factors that affect the price are the property’s size, its location, whether it has a yard, the neighborhood, and proximity of things, as well as the current prevailing local market. When you want to research and find houses for sale in Narooma, Sydney, or Melbourne, you check out that market specifically. The same thing is true for rent: wherever you plan on renting out, you should check the local rent prices of similar items. Having all the previously mentioned things in mind, you can create the right price.
The tenancy agreement
Drafting a tenancy agreement is a legal requirement, and it acts as a safeguard both for the landlord and the tenant(s). If this is your first rental property, it would be best if you contacted a lawyer who specializes in property dealings. He can help you draft a contract that will protect you in all kinds of scenarios. Include all the essential details in the contract. Some of the essentials include the rent amount, period of tenancy, security deposit, responsibility for repair expenses, ongoing expenses such as maintenance costs, electricity, and other utility bills, pets, subletting, and so on. There are quite a few things to incorporate.
Responsibility
Even if it doesn’t seem so, being a landlord requires a certain level of responsibility. Before renting out, consider whether you have the time for that. Renting your property out has more benefits than leaving it empty, even with all the responsibility. These include keeping vandals away, generating income, and tax benefits, to name just a few. When things go according to plan, it’s not difficult to manage a rental home besides all your other obligations. However, things don’t always go smoothly, and that’s when it can get challenging. You must be aware of this, calm and prepared.
Marketing
The final step involves advertising your property. Think about the best ways to advertise your rental property. You can read more about it online. Start with creating a list of things that make it appealing – you’ll use this to advertise your property. Make professional and quality photos of your property. List its features as well. You can post advertisements in local newspapers, ads, and on some platforms.
Hopefully, this short guide helps you prepare well for renting out your property. To achieve overall rental success and be a landlord without unnecessary worries, you shouldn’t overlook any of these aspects.
