Deciding to rent your home is a pretty major choice with many potential rewards. It can empower you to enjoy a passive income in the near future, but it will immediately require you to wear several different hats. Follow these steps to make sure that you protect your best interests before renting your property to a tenant.
Store Any Excess Belongings
Even if you decide to offer your home for rent as a fully furnished house, you want to store any personal belongings except the basic furniture that will be used by the tenants. Utilize moving and storage services to do the hard work for you. That way, you will know just where your belongings are and have them cleared out of the way.
Team Up with a Real Estate Agent
It's important to enlist the help of a real estate agent to find an ideal tenant. Not only will the real estate agent have firsthand knowledge of current real estate trends and market rentals, but they will also be able to help you accurately price your property at competitive rates. They will protect your best interests and screen tenants to ensure that your long-term investment in the property is also protected by weeding out unsavory tenants.
Acquire Both Property and Liability Insurance
Be sure to purchase property insurance and liability insurance before you rent out the home. You should actually do this before you even show the home to potential tenants. No matter how well-screened your tenants are, you still need to take every precaution to protect yourself from any potential accidents and even scams. Fully insure your home so that your own personal investments and financial well-being are not at risk in the event of damages.
Property insurance can protect you against destruction and damage from weather issues, vandalism, theft, fire, and even smoke. The liability insurance will protect you from claims that arise from alleged injuries or real injuries that happen on your property. Additionally, liability insurance may also cover accrued legal fees in the event that you are sued regarding an incident on the property.
Evaluate Your Home and Property
Be sure to thoroughly evaluate your home and property to ensure that they are in good condition before you rent out the house to tenants. You also need to be sure that the property is safe for showing. Look over the home for any loose boards or carpets. Be sure that things aren't placed where people may trip. Walk around the exterior to make sure that there are no areas that pose a potential danger to people or animals. Look to see if there are any further items that should be moved to your storage unit.
Once you have ensured that the area is safe, inspect it for cleanliness. Be sure that things are clean and tidy. Try out all the appliances to make sure that they are in optimal working order. Be sure that everything looks nice and appealing.
Finally, keep in mind that it's important to take these three steps before showing your property and welcoming potential tenants to your home. As long as you take these three actions, show respect for the tenant, and are proactive in protecting your best interests, you will be setting yourself up for success as a landlord.
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