Your rental property is an important source of income. Therefore, you need to take care of some important aspects before renting out your home. Here are 5 Tips for renting out your first home:
1. Prepare your home:
Before renting a property it is important to make sure that your property is in well-maintained condition.
- Ensure that the house is neat and clean.
- Consider applying a coat of paint, if needed.
- All appliances should be in working condition.
- Fix anything that is damaged.
Better the condition of your home, more tenants will consider renting your property, which will ensure you enhanced renting rate.
2. Fixing the rental rate:
Before fixing the monthly rental rate, first, analyse the demand in your area. Understand the numbers of rental properties in your area. Compare and try to analyse their rental rates. Search online the similar sized properties or contact the good property agent in your area.
Rental rates will not only depend on the size of the property but the popularity and security of your complex will be an important factor. Also, the nearby amenities in your neighborhood will be the governing factor in fixing the renting rates.
Make sure that fixing the rental rate includes the cover for repair works or general maintenance.
To find the hidden costs of renting:Hidden Costs of Renting a New Apartment – RentUncle
3. Screening the tenants:
Finding the right tenant is very tricky. If you don’t do proper screening, you may end up with the tenants who don’t pay the rent or refuses to vacate your property . To avoid all such problems, all the applicants should be thoroughly verified.
Screening the tenant should include:
- Carry out Background check
- Verify employment and income of tenant
- Check rental history
- Have a reference of 2-3 people.
Before signing any agreement, have a face to face meeting with the tenants. Conducting proper screening will help you in minimizing the risk of being a landlord.
For proper screening of tenants, visit: https://rentprep.com/tenant-screening/
4. Prepare a legal agreement:
A written rental agreement is very crucial for both landlords and tenants, as terms and conditions included in it will protect the rights of both the parties. A good and specified agreement will avoid all unnecessary disputes between landlord and tenant.
The written agreement should also include the rent payments, security deposits and other fees. Mention the duration of agreement and include the renewal criteria.
House rules should be clearly defined; whether pets are allowed or not, also other restrictions should be mentioned.
Also, an agreement should clearly mention the tenant’s responsibilities for maintenance and repair. You can also include the penalty clause or compensation clause in an agreement.
Here’s the template for rental agreement: Free Rental Lease Agreement Download
5. Protect your property with insurance:
Protecting your property from any sort of misshapen is extremely important. As a landlord, you should buy rental insurance, along with building insurance. Landlord insurance will help you in managing the risk involved in renting the house.
Policies will protect you from:
- Harm to property by tenants.
- No payment by tenants.
- Loss of income, when property is being repaired.
In South Africa, after the fixed period has passed, you are allowed to add any amount of insurance increment to your agreement. However, you cannot charge for initial insurance.
If you are still confused, check the following blog: How much do I insure my home for