What do I need to do before renting out my property?
Every landlord/ property manager has asked this question at some point in their lives. Some even ask this question every time they hire a new tenant. It’s better to be safe than sorry, right? After all, mismanagement can prove very costly in the long run. So, here are five things to do before renting out your property.
Get Insured
Property owners have the legal and ethical responsibility to ensure the property is in ideal condition. If a tenant can at any point prove that they got hurt due to the landlord’s negligence, you become liable to a lawsuit. To eliminate the risk of getting sued, and for many other benefits, you should get the property insured.
An insurance policy can help you stay on top of your maintenance requirements. It also becomes necessary when you live in areas susceptible to natural hazards like floods, fires, and storms. It is the simplest way to avoid unnecessary trouble and unforeseen repair costs brought by natural calamities.
Determine the Rent Price
Determining the rent price doesn’t mean asking for what you think is fair. When setting rent, you should conduct market research to avoid charging more or less than what is reasonable. Make sure you go around the market and get information on the rent price for other properties similar in size to yours.
You should also determine the pros and cons of your property and take those into account when setting a rent price. If your property is the only house with a pool, make sure to factor it alongside nearness to amenities and other features of the house when calculating rent.
Set Contract Terms
The contract is extremely important. Ensure you lay out the dos and don’ts on the property very clearly before you sign the rental agreement. Whether pets are allowed or not, maintenance and repair responsibilities of the tenant, the rent increase terms, and so on.
Tenant Screening
Screening is an essential step in the renting out process. It is also crucial to the well-being and upkeep of your property. It can help you avoid tenants who have a history of evictions due to bad behavior, inability to pay rent or irresponsible conduct, and property use.
Take Pictures
Lastly, but most importantly, take pictures of the property the day you sign the contract. It will ensure smooth transitioning of the renting out process. It serves as proof that the owner/manager handed over the property in an ideal condition, so the tenant cannot try to pin the blame for any damage incurred during shifting on you.
In the End!
Renting out properties and managing rentals is a challenging job, which is why many owners hire property managers. They can dedicate the time needed to maintain a property, go through the hassle of marketing, hire tenants, and handle the legal documentation process, including insurance. With these five things to do before renting out your property, we suggest you also hire a competent property manager.
