Whether you are having a hard time selling your house or are short on cash, renting out your home can be an ideal option. Besides, renting out a property is rather easy as compared to selling a house which is a much-complicated process. Besides, if you are short on cash and need money to pay for bills, mortgage payments or other expenses, renting out your property is a great way of getting some extra income. With that said, being a landlord is not an easy job. Right from maintaining the property to running a thorough background check, it is a full-time task that requires careful execution. But, many times, property owners do not strategize their move and commit serious mistakes which either lead to loss of property or delayed monthly rental payments.
Furthermore, some of the top mistakes made by homeowners may seem obvious, but unfortunately, people make them again and again. Read on to find out five common mistakes to avoid when renting out your home.
1. Failing to screen tenants carefully- One of the common mistakes people make when renting out their home is not screening tenants carefully. Before renting out your home, it is important to do a thorough background check on all the potential tenants. Besides, you need to be able to depend on this person not only to pay the rent on time, but also to keep your property in good condition, so make your pick wisely.
2. Not double-checking maintenance work- Before you rent out your home, make sure you handle all the necessary maintenance work. Furthermore, even you got all the leakages fixed just last month, make sure you double-check it so that the tenant cannot claim not to be responsible for damaged caused by them.
3. Rental gap- Many people make the mistake of not properly understanding their market and quote a rental amount which does not match the norm in that area. Furthermore, if you keep the rent as per the property and its location, you will be able to attract more potential tenants. Furthermore, know the USPs of your property, the neighborhood, access to transportation, etc. and make sure you explain these to the tenant.
4. Not cleaning the home thoroughly- Let’s face it, nothing will turn off a potential tenant more than a dirty place. Consecutively, before renting out your property, make sure the unit is thoroughly cleaned, especially areas such as toilet, kitchen and tub.
5. Get it in writing- Even if you are just renting out your home to a friend or taking in a roommate, it is important to get the terms of your deal in writing. Furthermore, neglecting to have a legally enforceable lease in place can invite a lot of headaches, particularly if the tenant damages your property or falls behind with the rent payments. Furthermore, your lease should outline what will occur if any of these things happen, as well as its duration and what you are providing in return for the rental payments.
While these were some of the mistakes that you need to avoid when renting out your home, there are many others, such as not staying properly insured, Always sticking to a fixed price among many others.