A home can be purchased either for the purpose of staying by the owner or for renting it out. Renting out a home and becoming a landlord requires some groundwork. You will need to find a tenant, prepare detailed documentation such as the lease, insurance, etc. For finding a tenant you can either hire an agent or consider renting a property privately.
Here’s a brief outline of the process of renting a property:
Fix the rent of your house
For fixing the rent of your property, you will need to make it comparable to the market rate. Therefore, find out the rent of similar houses in the neighbourhood. You could also check the newspaper and online sources for determining the rent.
Finding a tenant:
To find a tenant for your home, you can engage the services of a real estate agent. However, he will charge you a high amount as a commission. Therefore, it is beneficial to rent the property without an agent. For renting a property privately, you will need to list it on a genuine, high-visibility property listing site. Potential tenants will connect with you directly and you can negotiate and fix the rent of the property. It is a good idea to do a background check of the tenant before you finalise the deal.
Have a written lease:
Ensure that you have a written lease that clearly indicates the rights and limitations of all parties concerned. Since this is a legal document, it is recommended that you consult a qualified attorney for this purpose.
Get the Appropriate Insurance
A rental home insurance differs from homeowners insurance. Select the right rental home insurance policy for your property to secure it.
Renting a property privately is beneficial to the owner as he can directly interact with the tenant. Since he does not engage an agent, he saves on the agent’s commission!