If you own property and want some to make some extra money to supplement your income, it is beneficial to rent out your property.
But it is necessary to know the formalities and legalities with respect to renting out your property.
Here we have compiled a list of things you need to keep in mind before you decide to rent out your property.
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Demand for Rentals
The demand for property in your locality is a major deciding factor in renting out your property.
If the real estate values in your area are not high, you may not get lucrative returns for your property.
On the other hand, if it is a prime location, you can get really wonderful returns for your property.
Condition of the House
You must make sure that your house is in good condition. Nobody wants to live in a house that has a leaky roof, faulty plumbing system, is not painted well, or needs constant maintenance.
You will need to spend a little on your house before it will get you some returns. Make sure it is comfortable and everything is functioning smoothly before you rent it out.
Advertise your Space
Once you have made the necessary repairs, it is time to let people know about your property.
Make a list of the USPs (Unique Selling Point) of your house. Use attractive marketing jargon to entice the people looking for rentals.
You might need to rope in a realtor to add that professional touch. Nowadays, there are property management companies that can take care of all the nitty-gritty of renting out your property.
The Rules and Laws
You need to be aware of the rules and laws pertaining to renting out your house in your locality.
Make sure that everything is legal and above board. You also need to have a basic understanding of the Residential Tenancy Law to avoid any altercations in the future.
The Overheads
Renting a house comes with some overheads over and above the repair costs.
They may include property management, taxes, advertising, and maintenance. You might not be able to actually pocket a lot of the rent that you get.
These factors should be considered before deciding on the rental sum.
Insurance
Rental home insurance is a must to protect your interests while renting your house.
There are many companies that offer landlord/rental insurance coverage to protect your interests, wherever your property is located.
Availing the services of such companies can save you a lot of trouble later on.
The Ideal Tenant
You are putting your precious property in the hands of the people who will come to live there.
It is important to thoroughly review and research each applicant before you come to a final decision.
Check the references, look for any criminal records, and, if necessary, contact the previous landlords as well.
A Good Lease
Your tenants’ words might be worth their weight in gold but it is advisable to have everything in writing.
A good lease must include the lease term, payment due date, security deposit, rules of behavior, housing society rules, repairs, their responsibility, and eviction rules.
Following these few tips can ensure a good landowner-tenant relationship and add to your source of income while at the same time protecting your rights as a landowner.
Many people are afraid to rent out their property to complete strangers but keeping these points in mind will help you avoid any trouble and you can safely rent out your house without any hassles.