5 Things to think about before renting your home
Making the right choice for you and your home
Are you thinking about renting your home? Are you struggling with the idea of turning your property into an investment? Not sure you want to be a landlord and deal with the maintenance and upkeep needed to manage a property? Take a look at “5 things to think about” before turning your home into a rental property to get a better idea if renting is the right fit for you and your home.
#1- Determine your objective in renting
The first step to making the decision on whether you want to turn a home into a rental property is to clearly define the objectives in doing so. To do this, you have to think of your home as a means to create revenue and better understand what you want out of a rental home.
- What are your goals for the property?
- Are you renting for a short period, or is this a long term investment?
- Are you looking to rent several properties in the future, or is this a one-time thing?
- Are you going to handle the day-to-day issues, or are you hiring a property management company?
- If you are going to handle tenant issues, what do you think that process will look like on a daily, weekly, monthly basis?
- If you want a property management company to handle the work, what services would you like, and what company best fits your needs?
#2- Dive into the specifics of being a landlord
If you decide to use a property management company for help with renting your home, understand there are different levels of service. At Oak City Properties, our full management property service will market the property, locate prospective tenants, and show the home. Once a tenant is placed in your rental property, we will: collect rent payments, assess and collect late payment fees, provide 24/7 maintenance, help with accounting/tax services, and deal with any court appearances in the event of an eviction.
If you wish to rent your home without any assistance and will be taking on the brunt of the “landlord tasks,” you will need to dive deeper into the specifics of being a landlord.
Learn things such as:
- Creating an application screening process
- Setting the leasing terms for the rental
- Researching how to define occupancy terms
- Defining procedures to handle rent, security deposit, and late fees
- Have safeguards in place to handle any tenant issues and concerns.
- Have an understanding of your insurance policy and the idea of renters insurance
- Better understand how you will handle maintenance concerns (24/7)
For more information on some of these topics, take a look at
- 4 Survival Tips for Renting your Home
- Why it’s important to have renter’s insurance
- 7 Benefits of a Property Management Service
#3- Know the laws in your state
Being a landlord is more than just collecting the rent and making sure to handle weekly maintenance issues. A quality landlord must also know the tenant/landlord laws in the state in which the rental property is located. Knowing the requirements and processes used in each state is imperative for knowing how to handle situations like evictions and lease violations.
For more information on how to handle a tenant issue take a look at
- Evicting your tenant the right way
- Survival Guide for Renter Issues: how to handle a tenant that violates a lease
#4- Repairs and Maintenance
Once you better understand your objective in renting the home and are versed in the laws and processes, the next step is to examine your home with a critical eye. Think about all the things you will need to complete to get your home “renter ready.”
To do this, look at your home on two separate fronts:
- What general maintenance needs to be completed to get the home ready?
- What needs to be fixed?
- What repairs must be completed to make the home safer?
- What needs to be painted or touched up around the home?
- What can be done to upgrade the home to entice potential renters?
- Do I need to remodel the bathroom or kitchen?
- Do I need to upgrade the appliance and fixtures of the home?
- Would new carpet help my home be more marketable?
Take a look at the following blog for more information about things renters want to see in a home:
#5- Define your application process
Once you have prepared your home for potential renters and have a better understanding of what it means to be a landlord, the final step is to define your application process. To do this, make sure to think about the following things:
- What will be your application process to find new tenants?
- Background check
- Rental History
- Credit history
- Yearly wages
- How will you screen the individual?
- What is your application fee?
- What is the security deposit for your home?
- How will you interview the potential tenant?
By the time you have researched and thought out these five steps to renting your home, you should have a better understanding of the process needed to find the right tenant and know if this is the correct path for you. However, if you would like some help with the process, a property management service might be the solution to the problem. At Oak City Properties, we make sure to work with you each step of the way when renting your property and have the knowledge/experience to make this process manageable.
Want to read more about property management services or how to make your investment property POP? Here are a few blogs that may interest you: