Taking a closer look at the current status of the real estate market, it’s easy to notice that more and more homeowners are becoming landlords. And why shouldn’t they? In the last few years it seems that the home prices have dropped by a massive fifty percent or even more, depending on the part of the country you live in. Therefore, if you would really want to sell your home in such a market, you would only be making a big mistake, since you won’t get anywhere near your expected price. On the other hand, you could be putting your house up for rent, since there are a lot of people who are interested in renting a house. No matter if you have 2 or maybe 4 bedroom houses for rent, if you know how to market your estate, you’ll be reaping the benefits pretty quickly.
1. Consider updating your house
If you decided to become a landlord, then you should know that it falls onto your shoulders to provide prospective tenants a healthy and safe home to live in. Before you can rent your house though you should know that you may require to consider a home inspection, as this will ensure your property is up to code. Better yet, a clean and updated home will not only increase the chances of finding tenants, but at the same time based on how modern and clean your home looks, you will be able to ask the tenants more money. But how do you need to go about this? Well, these things depend on your property’s condition, so let’s take a closer look below at some of the things you need to be aware of:
- If your house features a chimney, then you need to show proof to the tenants that it has been recently cleaned.
- Buying fire extinguishers that can be easily used in case of fire and also installing some detectors is a must. A CO detector should also be considered.
- It could be that your home is a bit old and if that is the case, be sure the wiring is safe.
- Check the plumbing and if there are any leaks, then fix them right away.
- Take the right measure and fireproof your house.
- If there are any unique or very expensive light fixtures installed, you may want to replace them with cheaper alternatives.
- Every room of the house needs to be given a fresh coat of paint.
- Last but not least, it’s mandatory that your house is clean, since this way it’s much simpler to find tenants.
2. Changing your home’s status
When you’ll rent out your house, you also need to get in touch with the mortgage company, letting them know that you are no longer going to live in it. Not only will they need to approve of this, but at the same time you may also have to pay a small fee. After getting in touch with them, you also need to contact the local municipality and change the status of your house.
3. Your homeowner’s insurance needs to be changed as well
It’s vital that before anyone will start living in your house, to get Landlord Property Insurance for your specific type of rental property. Since this is going to be costlier than the homeowner’s insurance, you need to make sure you can afford paying for it.
4. Property management
At this point you need to give some good thought to the person you would want to manage your property and in many cases, it seems that landlords will go ahead and hire a property management company. This is a very important decision and if you want to do the work on your own, then you can save some good money, but on the other hand, you may feel very stressed and spend a lot of time managing your property. And when you think about the fees, which are generally 10% of the monthly rent you get from the tenants, it’s not such a big deal after all. These services will handle everything from finding tenants to managing repairs and of course, collecting rent.
5. How much do you want to charge?
When it comes to setting the rent, this can be a bit tricky for some landlords, but if you speak with a property management company, they will be able to give you an objective price for your property after carefully inspecting it. Yet if you really want to set the rent on your own, then you need to check the amount other people in your area are charging and then decide on a price.
6. Get it in Writing
A lot of landlords are making the mistake of renting their house to friends and\or family, thinking that they could be trusted. The thing is that no matter how well you know anyone, it’s always best for you to get everything in writing. This is because when you have a rental contract, it will not only protect you, but also the tenant. In the contract you should include information of who is responsible for paying the rent, when the rent has to be paid, the deposit amount, move in and move out date and so forth. If the lease is broken, then you also need to have a set of procedures in places, so think about them as well.
7. Don’t throw the receipts away
Every dollar you spend for your property needs to be accounted for and that is why you should never throw your receipts away. Even better, many landlords are not aware of the fact that insurances, mortgage interest, taxes and repairs are tax deductible, which means you can save a lot of money in the long run. Therefore, make sure you get in touch with your tax professional to learn more about the expenses you can write off.
Putting your 4 bedroom houses for rent up for sale is definitely a very smart move and in the long run, they can supplement you with a great amount of money that you can then invest in more property if you want. Just make sure though that you keep these tips in mind when renting out your property, since doing so will keep you away from unnecessary problems and stress.