Planning on renting out your home? It’s not going to be that simple! You have to keep a lot of thing in mind before you finally put a “for lease” sign out the front. Renting out a house involves marketing your property, assembling and managing the paperwork, having a due responsibility towards your tenants. There are also many challenges that are included in the process, like- finding the right tenant, ensuring the property is not misused by the tenants, keeping a tab on the maintenance and damages, and ensuring there are no delays in rent payments.
Therefore, if you are a landlord and planning to give your property on rent, here’s a handy checklist that will help make the process smooth for you-
Marketing the property
These days, buying a property or renting it out is just a click away. Therefore, it will be wise to make your property catch more eyeballs using a variety of real estate websites. All you need to do is create a profile, fill in the details, and upload the pictures of the house. If you are not well versed with the internet, then you can adapt the traditional way of newspaper advertising.
Hire a broker
There are several advantages to hiring a broker. Brokers are professionals, and hence they ease out the complete process of finding you the right tenant. Also, they offer add-on services like creating agreements and other paperwork and tenant verification. However, their services come at a cost; they make the process hassle-free and less time-consuming.
Fix the rent
Fixing the rent amount is the first step towards renting your property. Before setting the amount, do thorough market research to find out the current trend and rates. In case, you are planning to fix a higher rent than the market rate, ensure that you justify it by offering add-on benefits.
Signing a rent agreement is the best way to bind both the parties, which they mutually agreed upon. It is essential to make a legal contract when giving your property on rent. If not done rightly, you can fall prey to frauds and imposters. Get all the papers duly signed and put across the terms and conditions upfront.
Check the tenant’s background by through police verification. This process minimizes the risk of renting your home to notorious people. Get the identification proof of your tenant, fill the verification form, and get it submitted to a police station near your locality.
Advance and rent increase
Set a rule regarding the rent payment tenure and increment in the amount. Take two months’ rent in advance. A landlord is allowed to ask for this amount as a preventive charge for any damage of property, or the tenant may not be able to pay a month or two rent by providing any valid reason for that.
Details of furnishings
List out all your furniture in details for fittings and features to ensure there is no damage done by the tenant. If you find any damage to the enlisted items, then you can levy a penalty charge. Also, check the conditions of walls and roof before renting out the house to avoid any clash in case of any damage.
No commercial usage
Tenants these days, use rented residential property for commercial purposes to avoid high rents. They can easily open a tuition center or a small office in a residential property. A landlord should make it clear in the rent agreement about the restrictions and rules the tenant has to follow to avoid the chances of a clash.
Insurance your property
Make sure to inform your insurance company that you are no longer living in your house so that they can arrange the landlord’s insurance for you. A home insurance policy will come in handy in case of any mishap that occurs in your house. You can also protect your valuables at home like furniture, wall hangings, and decor with comprehensive home insurance that covers both structure and home contents.
Keep the above-mentioned points in mind before renting out your property and make the best out of the deal.