If your property has excellent amenities and is located in a great location, renting it out can be an exciting way to generate passive income. It is even possible to make a living from it, depending on your circumstances! However, while this all sounds like a great idea, it can be a bit overwhelming when you begin to dig more deeply into the process. Nevertheless, this post is here to help and will cover all the basics to help you get started.
Use A Property Management Company
If you are simply unable or unwilling to go it alone, you can always elicit the services of a management company to deal with the nitty gritty, so you don’t have to. Renting out a property can be easy with a professional condo management service that manages legal checks and marketing. It’ll help make sure your space gets the attention it deserves and that tenants have the right fit for you. No more hassles with background checks and tenant screenings. Property management companies take care of all that, so you don’t have to worry about ensuring tenants are taken care of.
Moreover, they handle all applicable laws pertaining to the state and jurisdiction your house is based. In fact, this property management Henderson, NV-based company asserts that you will have to contend with State laws and those on a Federal level, meaning that things can get pretty complex quickly!
Essentially, they’ll provide any needed maintenance and handle any difficult conversations that arise, so you don’t have to deal with any unexpected problems. Plus, property management companies can help set realistic rental rates for maximum returns without causing potential problems for tenants or dealing with lots of paperwork yourself.
Advertise Your Property In Relevant Classifieds Or Social Media
Advertising your property is a great way to find the perfect tenant. One way to do this is to place listings in online classifieds or local newspapers. Include as much basic information about the rental as possible, such as price, location, size, and available amenities. However, It’s not just about getting views but grabbing attention with a unique post tailored to your property. Ensure it stands out by showcasing the best features with compelling visuals and descriptions.
Further, you must be bold and think outside the box regarding advertising… explore different channels, platforms, and ideas to reach as many people as possible. Nevertheless, one thing to bear in mind is that the place you choose to advertise will dictate the type of tenants you end up with. For instance, advertising on Facebook will offer a broad range of renters, from millennials to boomers. Conversely, placing an ad in a local paper will likely attract older renters who regularly read these kinds of ads. This isn’t a strict rule, but something to be conscious of.
Set The Right Rental Price
Setting rental prices starts with research. Check what similar properties are going for, ask agents and scour online. Dig into Zillow, RedFin, and others to get an exact idea of the market. You need data to make your decisions, and the more knowledge, the better. The next step is to figure out the exact amount you want to charge each month after getting a feeling of the general rent range in your area. It’s important to consider whether you’ll offer amenities, what repairs will be included in the rent cost, and how flexible you are with pet fees and deposits.
Once you’ve settled on a rental rate, add in extra fees if necessary, such as late fees or fees for additional occupants over a certain number.
Make A Solid Contract
A rental agreement spells out the rights and responsibilities of both you and your renter. Without a well-written agreement, disputes may arise, possibly leading to a costly court battle later on. A robust contract should cover the basics, such as:
- The length of time that the renter will occupy the property
- How much rent will be paid (including when it is due)
- Rules for late payments
- What amenities are included in the price
- Whether pets are allowed
It’s also wise to specify any tasks, such as yard maintenance or snow removal, that are expected of the renter. When in doubt, it’s always best to consult an experienced attorney to create a sound legal contract and avoid future complications with renters. Drafting up a quality lease that covers all terms and conditions can give you peace of mind knowing that any potential issues have been taken care of ahead of time!
Get. Landlord. Insurance!
The importance of this final point cannot be stressed enough! Nobody likes having to take out yet another insurance policy, but the peace of mind landlord insurance can provide will help to keep you from going bald due to stress! Landlord insurance will cover the usual things like theft and damage but should also include coverage for loss of rent due to tenant default or eviction.
Rental properties can be a great way to make money, but you must understand the basics of how they work and how to manage your tenants. From setting rental rates to collecting rent and handling repairs, there’s a lot that goes into the process. Doing your research, understanding local laws, creating contracts, and taking out insurance are key considerations for success in leasing.
