- Check applicable laws in your local area before renting out your house.
- Hire professional inspectors to make sure the property is safe and livable.
- Prepare the property by cleaning it thoroughly and making any necessary repairs.
- Screen potential tenants carefully with references and background/credit checks.
- Research the rental market to set the correct rent that covers expenses and allows for profit.
Renting out your house for the first time can be a great way to earn passive income. But being a landlord comes with many responsibilities that can be overwhelming, especially if you’ve never done it before.
To ensure that your rental experience goes smoothly, there are a few essential things that you need to do before you rent out your property. Here are six crucial steps you need to take before renting out your house for the first time.
Check Your Local Laws
Before renting out your house, you must comply with all the applicable laws in your area. Landlord-tenant laws vary from state to state, and you must know your rights and responsibilities as a landlord.
You may need to obtain a rental license or a permit and be required to perform regular inspections of your rental property. Familiarize yourself with the laws in your area, and ensure you comply with them before renting out your house.
Hire Professional Inspectors
Of course, ensuring your rental property is safe and livable is essential. You’ll need to hire a professional inspector to inspect the property before renting it out. The inspector will check for any potential hazards or safety issues in the house.
You should also acquire a gas safety certificate to ensure that all the gas appliances in your house operate safely and efficiently. This can be done by a registered gas safety engineer who will come and inspect your home. If the inspection fails, you’ll need to take the necessary steps to fix any issues before you can rent out your house.
Prepare the Property
To ensure that your rental property is appealing to potential tenants, you must ensure it’s in good condition. Prepare the property by cleaning it thoroughly and making any necessary repairs.
Ensure that the appliances are in good working order and that the property is well-maintained. If you’re renting out a furnished property, ensure that all the furniture is in good condition and clean and comfortable.
Screen Your Tenants
Finding the right tenants is essential to ensure your rental experience goes smoothly. Before renting out your property, take the time to screen your tenants carefully. Request references from potential tenants, and perform a background and credit check.
This will help you identify potential red flags, such as a history of late payments or evictions. Screening your tenants can help you avoid problematic tenants and ensure that you select tenants who are reliable and responsible.
Set the Right Rent
Setting the right rent is critical to the success of your rental property. Before renting your property, research the rental market in your area to understand what other landlords are charging for similar properties. Consider your property’s location, size, and condition when setting the rent. Ensure that the rent you charge will cover your expenses and allow you to make a profit.
Hire a Property Management Company
From screening potential tenants to handling maintenance issues, managing a rental property can be overwhelming, especially if you have other commitments. One of the best decisions you can make as a landlord is to hire a professional property management company. Here’s why:
Tenant Screening and Coordinating Showings
One of the most essential functions of a property management company is to screen potential tenants for your rental property. Finding the right tenants can be daunting, but a management company uses thorough screening processes to find reliable and responsible residents.
Experience in Handling Maintenance Issues
Maintenance issues are inevitable when you own a rental property. Property management companies have experience working with contractors and vendors to handle maintenance issues. These companies also have access to reliable and affordable services and can handle emergency repairs at any time of the day.
Improved Rent Collection and Financial Management
Rental property management involves a lot of paperwork, including rent collection, payroll, and financial reports. A professional property management company will ensure that rent is collected on time and that all financial records are accurate and up-to-date.
Legal Protection and Professional Expertise
Property management companies are well-versed in the legalities involved in owning and managing rental properties. They will inform you of all the legal obligations your local government requires, including tenant screening, eviction procedures, and property safety requirements.
Final Thoughts
Renting out your house for the first time can be a great way to generate passive income, but it’s essential to do it right. By preparing your property, screening your tenants, setting the correct rent, and hiring a property management company, you can ensure your rental experience is smooth and hassle-free. Follow these tips before renting out your house for the first time, and enjoy the benefits of being a successful landlord.
