Knowing how to rent your house is more important than ever, especially if your mortgage payment just leapt up. Unfortunately, many of us have purchased houses that we could not afford, but that does not mean all hope is lost. Renting a house can also help those who are trying desperately to sell but, with a buyer's market and a lot of competition, find themselves with a mortgage that won't go away. Instead of waiting for the bank to put a foreclosure sign on your yard, it's a smart idea to start renting your castle to recoup your losses. You may find that more people are interested in renting than buying. Here's how to rent your house quickly and to reliable people.
Advertise Your Rental
Unless the market knows who you are, no one will come to you. It is crucial to market your house. If you don't have a huge budget, start for free on sites like Craigslist. Craigslist is a wonderful resource that allows you to reach the people in your community who are looking for a rental. Even if a renter is not looking specifically for a house, you have the ability to persuade them in your direction with a winning combination of great price, beautiful pictures and easy accessibility.
If you do not like the idea of making direct contact with potential renters, you can choose to go through a real estate agency. Many agencies will provide a homeowner with a listing, a renter's background and credit check and also give the renter a tour of your home if you're unavailable. Agencies will charge a fee for their services, and oftentimes, they also advertise on Craigslist, which is something you can do for free. It just depends on how much time and money you'd like to spend on renting your house.
Make Your House Rentable
You may think your house is perfect as is, but will potential renters? Problems that you may have ignored (like the leaky faucet in the bathroom or the chipped paint on the living room wall) will be instantly noticeable to others. Be sure to clean your house top to bottom. It may be a good idea to hire a maid service for an extra-clean home. Be sure to keep the lawn mowed, also. No renter wants to live in an abandoned home or a home that looks like it's been abandoned.
Decide How Much To Charge
Renting your house quickly depends on how much you charge. If you list too high, you alienate a large renting community. If you list too low, you become vulnerable to large pool of renters who may damage your property. If you're struggling with how much to rent, consider starting at 1% of the value of your home. This depends on many factors, including the present condition of your home, your amenities and how much comparable properties are renting for in your area.
Know Your Tenants
Whether you are going through an agency or doing it yourself, you need to know who will be renting from you. Be sure to perform a background and credit check on your tenants-the investment is worth it. Research their rental relationships with other landlords, and call the previous landlords prior to renting.
In addition to a background check, you also need a rental agreement. Most states have a standardized rental agreement that you are able to download for free. Be sure to state specifically the terms of your agreement, such as the length of the agreement, the amount of the rent and responsibilities provided by you, such as lawn care.
Once you've updated your home and set up a game plan for advertising and screening renters, you have a good chance of renting your home at a price that can help you with your mortgage.
Rental properties can be a good investment, but there's more to owning one than acquiring equity while someone else pays the mortgage. You'll need to deal with maintenance and business issues, as well as the occasional ornery tenant. Before you sign the mortgage and post a For Rent sign, be sure you have the skills to handle the job or the money in your budget to pay someone who does.
Making repairs is often a sore spot between tenant and private landlords. While some landlords are great about making repairs quickly, others take a long time. On the other hand, some landlords clearly spell out in the lease when a tenant is responsible for a repair and reasons for delaying a costly repair, such as evaluating bids.
Some real estate purchases are for living, while others are for investment. Whether yours is for the former or the latter, it's important to know the issues involved in renting your property.
Becoming a landlord is no easy task. As a matter of fact, it can become particularly daunting at times. However, if you have the will, know-how, and personality for it, this is a job that can be lucrative and rewarding.