Tips To Renting Out Your Home Without Hassle

There are many reasons someone might decide to rent out their home. You owe more than your home is worth and you can cover the mortgage with rental income. You suddenly got transferred and need to move quickly, or you simply realize the income potential in real estate investing. Whatever the case, becoming a landlord is part of the game. Before you rent out your property, though, be sure you read the following tips designed to make the process a little easier. 

Find Good Tenants

You’ve probably heard horror stories about bad tenants but have no fear. Good tenants aren’t hard to find – you just need to do your due diligence. To begin your search, check with family, friends, and coworkers to see if anyone is interested in renting your property. If not, you can advertise online and in local print, but regardless of where the potential tenants come from, have them fill out an application to collect the pertinent info you’ll need to conduct a background and criminal check. You’ll also want to contact their references including employers and previous landlords. 

Set the Right Rent

Check rental rates for other rental properties in the area to find out what to set your rent at. It might be that you need to charge less than what your mortgage payment is, but to attract tenants, this might be the case. 

Make Tenants Sign a Lease

To protect you, your property, and your tenants, you must make your new tenants sign a lease. The lease should spell out every possible scenario and take into consideration any state or local laws that apply. Avoid using a blanket lease from the internet as it may not adhere to your state’s laws. To best protect yourself, you should consider hiring a real estate attorney for this part. 

Get the Right Insurance

If you decide to rent your home out, you’ll need a different insurance policy than you had when you were living in the property. Your homeowner’s insurance covered the home, any damages, and your belongings. A rental insurance policy, on the other hand, covers the home, medical expenses, legal costs, and loss of rental income should something happen. This policy doesn’t cover the tenant’s belongings, so they should purchase renter’s insurance, too. 

Consider Hiring a Property Manager

One of the biggest decisions you’ll need to make is whether you’ll manage the property yourself or if it’s better to hire a property manager instead. How much time do you have to devote to being a landlord? Are you handy enough to make repairs when they arise? 

If you don’t have a lot of time or aren’t the DIY type, you may want to consider hiring a property manager who handles everything from finding new tenants to evicting bad ones and everything in between. 

People decide to rent their homes for several reasons. Be it a job transfer, financial reasons, or simply increase your earnings, you should know the tips above first before you rent your home.