What You Need To Do Before Putting Your Home Up For Rent
One of the best ways you can earn a little extra money is by renting your home. Whether you have a secondary home for the season or you just have an extra room that no one is using, renting your house can be an excellent way to earn a bit of cash. However, there are a few things you should keep in mind before just opening your house to a paying stranger. Here are a few items you should endeavor to do before you list your house for rent.
1. Determine Rent
Obviously, before you can even advertise, you need to figure out how much rent you’re going to charge. One easy way to do this is just by taking a look around your area and seeing what other people are charging. You don’t want to ask for too high of a rate, especially if the rent doesn’t include certain utilities or services. You also don’t want to charge too low, or else you’re not going to be making any money at all. So, take a look around at the other townhouses or apartments or houses and determine which rate matches your own renting venture the best.
2. Get A Lease
In order to protect yourself and your property, it’s best to have a lease. This legal document can hold the renter responsible in the event that they end up destroying parts of your home during a party or if they try to skip out on paying rent. While it’s best to be optimistic, there are always people out there looking to take advantage of you. A legal lease can make sure you’re safe and protected.
This goes hand-in-hand with a lease. To better protect yourself, you’ll want to have insurance. This insurance is different from the homeowner’s insurance that you likely bought when you first procured your home. So, be sure that you read the policies and determine if it’s what you need or not.
4. Prepare For Maintenance
Whether you choose to fix up repairs yourself or hire a team, eventually things break. Depending on the renter’s responsibilities, it may or may not be up to you to fix broken amenities and appliances. If you lack the know-how of how to perform certain repairs, then you’re going to need to bring in a crew. Because this is something that will cost you money, you need to make sure you plan accordingly when determining the initial rent.
5. Eviction Plan
While it may seem harsh to plan for eviction so soon, it’s best to have a plan ready in the event that you need to evict someone.