Renting your home is a big decision, especially if it’s the home you’ve lived in, and there are some things you should think about before putting that property on the market. Today, we’re sharing some of the things you need to know before you rent out your property.
First, remember that being a landlord is a business. People will often go ahead and put up a For Rent sign without having a system in place to find a tenant or manage the property. That’s not a good way to get started. This is a business and it’s important to treat it that way.
You have to protect yourself. Find a solid lease that protects your interests. Be sure to document what the property looked like before the tenant took possession. Then, you need to document the property condition again after that tenant leaves. Make sure you’re able to show if there was any damage.
Do a self assessment. Is renting really something that’s for you? Keep in mind that any time you rent out a property, no tenant is going to take care of it the way you did. There will be wear and tear and you’ll have to repaint the walls and replace the carpet between tenants. You need to have a tolerance for that type of thing. Even when you have the best possible tenants, someone else is living in your home, and some people are unable to break the emotional attachment they have to that property.
Think about your time frame as well. If this is a property you had planned on selling but you weren’t able to sell, you might think about renting it out instead. That’s fine, but decide how long you want to keep it. If it’s a year or less, that’s not enough time to really make it worthwhile. You want to be able to rent it out for a couple of years or more.
Finally, consider hiring a good property manager as an insurance policy. Property managers have done all this before, and the good ones know what they’re doing. A professional manager reduces your risk because they will keep you out of trouble.
