In case you are unable to sell your house, it’s better to lease it. Leasing the property will definitely give some income from that investment. Though finding a good tenant can be a daunting task, but it can be easier if you know the basic things before renting your property. The article discusses the major things an owner shall know before renting the apartment.
Determine How Much Rent to Charge
Because renting is all about making money from the invested property, the amount shall be fixed properly. Knowing the current market value can be a great idea. You can go through newspapers, neighborhood rental signs, online resources, etc. to know the exact leasing value. Remember, it’s really important to fix a reasonable leasing amount because incorrect or the excessive demand may not get you the right tenants. And, if, in case you get them, they may not like to stay in your property for long because of the wrong leasing value.
Know the Tenant
Though, renting to someone known like your friend or relative, gives you an assurance of their goodness, but most of the times it’s difficult to enforce the leasing terms on them. So, it’s better to find someone out of your circle to rent your house. Certainly, there is a risk in doing so, but that could be avoided if you make all the things clear beforehand to your tenants properly.
• Know about their family background
• Know the family size
• Get an idea of the behavior from the previous residence
• Enquire the occupation and the financial status of the tenants
• Enquire if they have any credits pending
• Check for the criminal record
• Find if they can be relied on
Know the Laws
Being an owner, it’s not your choice that you can lease it the way you want. You certainly need to know the laws in order to make the deal efficiently. So, you can consult a certified agent or an accountant to know about the housing laws because the professionals know even the minor laws related to leasing a property.
Additionally, make it a point, not to involve in the verbal or the informal agreements. It can put you in trouble. And doing such informal agreements may not let you impose the leasing terms on your tenants.
Get Your Property Insured
It is extremely important to get the insurance done. Keep in mind that there are different insurance policies for the owners and for the renters. However, a renting insurance deal will include legal costs, house structures, damages, your belongings, tenant’s belongings, a list of needed repairs, etc. This policy actually protects you from paying off large amounts, if any unexpected thing happens.
Eventually, renting an apartment is a responsible task. An owner must know the basic and the important things that shall be considered before renting an apartment in order to avoid any misfortunes in the future. For more information contact us.