You may rent out your home to benefit from extra income to pay down debt or to save money, or for other reasons. However, renting out your home needs you to first determine if you can handle the obligation of being a landlord. It is safe to assume that sometimes, things may fail to run smoothly and need your immediate attention.
You will need to ensure repairs and maintenance, collect rent, dispense more for your insurance policy, and keep an eye on your tenant’s housekeeping skills to avoid wear & tears at your house.
- Prepare Your Home for Tenants
A clean and problem-free house can always attract renters’ attention. Do a thorough cleaning of your house and make sure all the appliances are in good condition and working properly. If you are renting out an area or room within your house, it is important to secure that space from the rest of your property.
- Marketing Your House for Renting
Note down the main features and attractions of your property so you can put it on the market. Post advertisements for renting home in local papers and on reputable classified websites. You can also work with professional letting agents to get help with renting out your home though they will take a fee if they find you a tenant.
- Work with Professionals for Financial Matters
You will need to talk to real estate lawyers and accountants to make sure that you are abiding by zoning ordinances, local property rules, and tax laws. Also, look for the exact expenses that may help you qualify for tax deductions. Remember, there are limits for yearly deduction and the amount you can get tax deductions every year based on your tax return.
- Screen Renters Carefully
After your property is ready for potential visits, choose your renter very carefully. Make sure your renter can pay the rent on time and is reasonable enough to keep your property in good condition. They must have a criminal free record and have no nasty habits that can put you and your family in trouble.