Real estate is often considered to be an excellent investment, providing you with a source of reliable income over the period of time that you have a family living in your home. However, the process of making sure that your home is ready to rent out and that you are prepared both financially and legally can be quite extensive. As such, it can be helpful to have some pointers when you first begin working on turning your house into a rental property. To aid you in your endeavors, here are seven things to do to your property before renting it out.
While renting out your home can be a major financial responsibility, it is one that requires you to be legally responsible as well. Long before you even begin working on your home to make it a proper rental property, reach out for help to learn more about landlord responsibilities and rights, tenant responsibilities and rights, and how you can ensure that you are legally supported in events like a tenant being involved in an accident within the home or a tenant refusing to pay their rent.
Another smart decision to make now is to purchase landlord insurance that will protect you from any property damage and potentially cover any financial losses and legal fees you may face if your renter experiences a personal injury on your property. Of course, not all insurance providers will give you the same coverage. If you want to make sure you are getting the best policies and premiums, compare landlord insurance with iSelect and get a landlord insurance quote today.
Whether you have purchased a property that you intend to fix and rent out or you are renting out dwelling you previously lived in, both older homes and newer homes will need to be inspected before they are deemed safe to live in. These inspections will look for items like pests, major issues like cracks in the foundations or roof damage, broken or inefficient appliances, and damage to the interior of the home.
While you are fixing these areas, you may also wish to take the time to revitalize areas of the home that have worn down over time. For example, if your kitchen cabinets are looking a little worse for wear, you can quickly enlist the help of a contractor who can install new cabinets that better match the overall theme of your home. The more care you take to ensure everything is working and up-to-date, the more desirable your home will appear when you begin looking for renters.
A home is essentially a product that someone wants to own for a period of time. People who come to your home looking to rent want to have a reason to want to spend their money on your home over what other options may be nearby. As such, you must add value to your property and present in such a fashion that you convince those walking through to choose your home for their next living situation. This can mean opening up the room by minimizing the amount of furniture in it, finding thinner curtains to bring more light into your home, and getting rid of any personal belongings so that potential renters can visualize themselves in your space. If you have the money, you may want to enlist the help of an interior decorator who can do this for you.
The outside of your home makes the first impression while the interior seals the deal. To make sure that renters feel drawn to your home, consider taking on projects like adding a garden to your yard, finding a window replacement expert to get rid of any windows that look dirty and tarnish the front of your home, and refinishing your door and your porch to make it look new and exciting. Your renters will appreciate the level of care you put into making your home looking presentable.
5. Create a detailed record of the state of your home and the objects within once everything is in place.
If you do not know what your home looks like before someone moves in, you are going to have a hard time determining whether or not any damage was caused throughout the duration of a renter’s stay. Take the time now to record the state of your home and all objects within it. Then, when someone begins renting, you can tell whether or not they are responsible for any damage or changes to the home.
The lease is the binding agreement between landlord and renter that is designed to keep you both protected. If it is illegal in any way or if you forget to add important policies to it, it can make renting out your home a nightmare. Work with someone well-versed in real estate law to draw up the lease that you and your renter need to maintain your peace of mind.
A walkthrough not only serves to show someone your house but to let them know the condition of it and how you expected to be maintained. Making a move-in checklist that you will go over your renter will let them know the quality of your home as well as protect you in the event that anything is damaged. Then, when they move out, you have a document detailing the before and after state of your property.
Renting out your property is a huge responsibility. To make sure that you are prepared, use the seven tips above to learn what renting out your home will entail.