Renting out your home can be a smart financial move. Being a property owner and having supplemental income coming in each month can help you offset mortgage costs and build up your savings.
But as much as it has its rewards, it also comes with certain risks and responsibilities.
By thinking ahead and understanding the bigger picture involved in becoming a landlord, you can anticipate challenges and set yourself up to run a successful rental business.
If you’re thinking of renting out your home for the first time, here are 5 things to consider:
1. Know Your Responsibilities
If you’re wanting to reap the rewards of running an income property, then it’s vital you understand what you’re getting into. You’ll be responsible for things like:
- Answering tenant phone calls at all hours of the day and night
- Investing in repairs and maintenance
- Following housing regulations at federal and local levels
- Knowing your liability
- Understanding tax requirements
2. Prepare Your Home
If you want to attract a certain caliber of tenant, then you need to set a certain standard for your property. Preparing your home for rental is also important because it minimizes the amount of work you’ll have to do once someone has moved in. Here are some basic things you need to have covered:
- Appliances are in good working condition
- Lighting and electrical are safe and up to code
- Plumbing fixtures are running smoothly
- All doors, windows and hardware are secured and work properly
Once you’ve got these essentials crossed off, make a list of all your home’s features that make it marketable.
3. Consider Your Ideal Tenant
Consider who your home is most suitable for. Is it a young family, a professional couple or a student? What is your policy on pets and smoking? Think of the best qualities you want in a tenant. Use this list in any promotion efforts so you can find the right fit.
4. Set a Competitive Price
Research your local area for similar rental properties. Determine what a fair rental price is for same size properties in a similar location with comparable features. This will help you determine a competitive price that will draw interest from renters.
5. Hire a Professional
Being a first-time landlord can be overwhelming. Fortunately, there are professional property management companies that can help you be successful in your new venture. Consider the benefits of working with a professional including. These real estate experts can take care of things like:
- Find and screening the right tenants
- Taking care of repairs and maintenance
- Communicating directly with tenants
- Collecting rent payment
- Making sure your business runs according to the laws and regulations
The Realty Medics are property managers in Orlando that have the professional experience to help first-time landlords create successful income properties. Contact The Realty Medics today to learn more about our full-service property management services.