Are you preparing to rent your house or apartment out to prospective tenants? That’s awesome as the US rental market is booming, especially if the location of the intending rental properties is in a tourist center or in a costly environment. Statista says about 44 million tenants live in rented housing units in the US and expects the figure to increase in coming years.
However, while home owners rent out their houses for many reasons, including generating cash flow, no real estate taxes, lower insurance costs, no maintenance cost or repair bills, increase in worth of the rental property, and reduction in utility costs, according to Investopedia, many homeowners often face the challenge of how to get a house ready for rent.
In this article, I will highlight five tips on how to prepare your apartment for rental while maximizing rental income. Also, possible policies to follow as a landlord and things to prevent a good tenant.
Immediately after you choose to rent out your house, you have to analyze the situation of your property and the possible responsibilities you have as a soon-to-be landlord.
The conditions to check include inspecting the house for the possible components to repair, availability to collect rent and manage the home or whether to hire a property management agency and what the policies surrounding renting out properties are.
For instance, the landlords’ minimal rental use rule of the internal revenue service. Or what the Lease agreement template looks like and how it helps protect homeowners and tenants. These options will further guide you on the next set of steps to take.
No one wants to rent a room with a plumbing problem, leaking roofing sheets, or having a dirty environment; thus, it is essential to make repairs to appliances and broken electrical and liquid outlets, ensure all home fittings are in the proper condition, clear clogged gutters, replace damaged furniture, and possibly carry out pest control.
Also, you might need to make an upgrade to outdated accessories and home tools. Also, you must complete the house, have a modern fitting and install missing appliances. Some of the essential devices needed in a place before leaving the house out for rent are;
When making these upgrades and installations, its good you consider who the potential tenant could be; for instance, is the room up for rent for a student or family? It helps know the vital accessories to install.
Also, furnish the house’s interior and exterior parts with modern home décor accessories that give the house a stylish and sophisticated look. The atmosphere should be warm. You can also make new paint that is neutral and provides the place with a welcoming look.
After that, clean the house of every form of dirt; this further makes the house look tidy and wear a beautiful look. If you are busy and unable to clean the whole house, you can hire a professional cleaning company.
Seek advice from professionals such as an insurance company or agent, accountant, and real estate professional to get clarity on tax laws, local property rules, insurance policies, and zoning ordinances.
The accountant also informs you of possible tax deductions, the amount deductable per year, and other necessary information regarding the tax deduction.
An insurance agent advises you on the landlord-tenant insurance policy, how it works, and its benefits. This policy protects you in case your tenant suffers an accident or damages some appliances or devices during the rental period. It is also essential to also learn about the Probate Law, especially how it applies in a situation where a tenant or landlord dies.
An attorney also assists with giving you clarity on what the landlord-tenant regulations are in your state and policies or community rules regarding rental properties. Advices from all these professionals assist you in setting a competitive fee and further help you not waste funds.
There are a lot of online sites where you can list your property for rent. Therefore, images you upload on these search sites give much impression about the apartment or room that is up for rent. With this in mind, you need to take a picture that captivates prospective tenants, whether they view it on a smartphone or desktop.
To take an impressive picture might prove difficult, especially without the right tool or gadgets. It could also be problematic when taking the images from a weird or awkward angle, when the room is without natural light, or during rainy periods. In this circumstance, hire a professional photographer to take these shots or ensure you can take a high-quality picture that will give a positive impression.
In screening the prospective tenants, the tenant’s promptness and willingness to pay the rental fee or their credit score is not the only factor to consider, especially if you will cohabit with the tenant. Their credit report, income, and criminal history are also vital.
These pieces of information will give you an idea about the prospective tenant and hence guide your decision. You obviously do want to live with someone who will put up strange behaviors after moving into your apartment, and getting the wrong tenant will give you some stress to even start the eviction process.
Further, you must be sure if this prospective tenant will keep your house in good condition or maintain it well. Or else, you might meet your home in a mess after the lease term expires.
Finally, after you have gotten the right tenant, request a meaningful security deposit fee and arrange a payment scheme with the tenant.
With these tips, you can put your house in good shape, attract the right prospective tenants, and make a good rental income while avoiding the possible pitfalls many home owners have previously made. You will also be able to make an informed decision on tax issues and know some of the policies guiding renting out an apartment.
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