Many people consider renting out their property due to various reasons. They may want the benefit of extra income or when selling seems impossible or relocating for work and want to defray the cost of an empty house. The motives to rent out property are many, but if proper planning is not done then you may have to go through a lot of trouble.
Here are steps which will help you get going in the right direction.
The benefits of renting are numerous such as the ability to prevent the damage that often plagues an empty home, the ability to generate steady income that covers bills and create profit. However, being a landlord is a responsibility that you need to fit into your life. The duties involve much more than just collecting rent, you need to solve the conflicts, be a negotiator, repairs and maintenance need to be taken care of and create an appealing home for potential buyers.
Before you try to rent out your home make value-adding improvements. Tenants are choosy and more attentive these days because of the increased availability of rental property and their expectations are high. Prepare your home by thoroughly cleaning it and make sure that all appliances are in good working condition. Check all the faucets, doors, windows, plug-ins and lighting, fill in the holes if any and put a fresh coat of paint.
Once you have made improvements on your property, you need to find tenants. There are many different ways to do this. You can either find an agent to do it or list your property online. The recent advancement in web development in Melbourne has led to hassle free property advertisements on different real estate portals. There are numerous benefits of listing your property online. You can reach a wider audience, you can provide a lot of information and even upload multiple pictures of your property and you can personalise according to your preference.
Set the cost of the rent by researching what other rental properties are going for in your neighbourhood and community. Remember that potential tenants are looking around for deals, so set the rent at a competitive price and also make sure that you highlight all valuable aspects of your property.
The most important decision that you will make to determine the success or failure of your rental is the person you put in. No matter how keen you are to rent out your property, having no tenant is better than having a bad tenant. A bad tenant can cause stress and financial loss, while a good one can provide peace, security and tranquillity. Carefully screen the tenants by asking questions and checking their identity proofs.
Have a written lease agreement so that both the parties understand their rights and obligations. A good lease complies with fair housing, tenant, rental and insurance laws of your region. The laws differ in different regions so working with the local lawyer is beneficial. The agreement should include security deposit, rental due dates and late penalties, routine maintenance, rules of behaviour, pet policies, eviction terms such as not paying the rent or damaging the property and the rules that the tenants must follow. Renting your property to a potential tenant can be beneficial for both you and the tenant, but only if you address and prevent the pitfalls.