Renting out your home may be a fantastic way to generate extra income or cover the costs of a second property. Here are some steps you can take to get started:
- Evaluate your situation: Before you start renting out your home, it’s essential to determine whether it’s the right decision for you. Consider factors such as your plans, the condition of your home, and the rental market in your area.
- Run the numbers: Renting out your home is an economic calculation. Determine your goals and put together a basic cost-revenue analysis model. It would help if you also talked to your accountant about the tax implications of renting before making any final decisions.
- Invest in additional insurance: Proper insurance protects yourself and your rental property investment. You’ll likely need landlord insurance on top of your traditional homeowner’s insurance policy when renting a property instead of living in it.
- Make necessary repairs: To help land the best offer for your home, make necessary repairs. Your real estate agent will tour the property and suggest preparing your home for the market.
- Declutter and stage the interior: Decluttering and tidying up your home will allow prospective renters to see the spaces. If that doesn’t do the trick, hiring a home stager might.
- Add curb appeal outside: Don’t neglect the exterior of your home. Remember the adage, “First impressions…” Even a fresh coat of paint on the front door can add significant interest to the exterior of your home.
- Advertise your home for rent: Once it is ready, it’s time to start advertising it for rent. You can use online platforms like Zillow Rental Manager or hire a real estate agent to help you find renters.
- Screen potential tenants: It’s important to screen potential tenants. You can use online tenant screening services or hire a real estate agent to help you.
- Create and sign a lease agreement: Once you’ve found a tenant, creating and signing a lease agreement is essential. A lease outlines the terms of the rental agreement and protects both you and the tenant.
- Store security deposits in a safe place: When renting out your home, you’ll likely require a security deposit from your tenant. It’s essential to store this deposit safely and follow your state’s laws regarding security deposits.
- Re-key the locks: After your previous tenants move out, it’s essential to re-key the locks to ensure your home is secure.
- Start collecting rent: Once your tenant moves in, it’s time to collect rent. You can use online rent collection services or collect rent in person.
I hope that helps! Let me know if you have any other questions.