Tips you need before letting your house for the first time
As the housing market is currently experiencing slow growth, many people are keen on letting out their property. Others are interested in being landlords, meaning renting out their property rather than outrightly selling it. This is responsible for the recent spike in rents. With the peak increase in rental property demands, being a landlord is an excellent way of earning additional income. Renting out your home is an excellent alternative to selling your homes, especially amid a slowdown in the housing market. It is the sensible thing to do while you wait out till a housing boom.
Here are other reasons why it may be a good idea to rent out your house this year:
- Renting out your home is an excellent way to enjoy a cash flow monthly, especially during this period of economic stagnation and recession.
- Landlords also enjoy tax deductions, which makes renting out a house a viable financial decision.
- A great way of trying out as an investor is by renting out your house. It enables you to experience what it is like to manage a piece of property investment. The lessons accrued from being a landlord can be enriching and worthwhile.
- Despite the recession and economic decline, we still look forward to the future. Property values are set to increase after every downturn. Renting out your house is better than short selling.
Tips for Letting out Your Home
Here are some of the tips you should know before renting out your home:
Prepare your property
It is vital to present your property in its best position when you are putting it out for rent. Tenants should never find worn-out and overused items in your property. An unfurnished apartment appeals more to renters. Also, improve your property’s exterior and outdoor spaces enhance its aesthetics, making it visually appealing to potential tenants. For instance, landscaping, the addition of non-slip decking and fencing panels, growing a garden and flower bed and decorating your home’s entry point are great ways of enhancing your home’s kerb appeal.
Ensure you hire the service of home cleaning experts to deep clean your home spaces. Deep cleaning is the key to making your home look its best. These deep-cleaning experts will polish and wash every corner of your house from kitchen cabinets to behind the toilet — some will even clean your refrigerator coil.
Also, ensure you duplicate the necessary keys for your tenants. We recommend you hand over notes on using some pieces of machinery or equipment in your property.
Insure your property
Getting an insurance policy to safeguard your property is essential. The insurance policy for a rental property is different from an insurance policy for your primary residence. Rental home insurance is necessary for a property you intend to rent out. It should cover legal costs, structural damage, repairs and other liabilities. We recommend you encourage your tenants to purchase insurance as well.
Insurance is an excellent way of covering financial loss and liabilities. Insurance for landlords is not legally backed, but it is one of the most sensible things to do.
Know your responsibilities
By renting out your home and becoming a landlord comes with responsibility. Ensure that your mortgage permits you to rent your property, some contracts contain clauses that may not allow some homeowners to rent out properties. Ensure you seek the counsel of your mortgage lender when confused. As a landlord, you will have to be available round-the-clock to your tenants. It is not unusual for landlords to receive phone calls from your tenants at wee hours. Tenants may bring urgent issues to your notice.
Here are some responsibilities of a landlord:
- The landlord’s most important duty is to ensure the property he intends to rent out is of a good condition and fit for habitation. The landlord also has the task of making sure the property is safe and well-maintained. This applies to the structural integrity of the property.
- Landlords also must ensure that only legal immigrants should rent out their property. It is a legal offence to permit illegal immigrants to stay in your property.
- Landlords also have a role to play regarding repairs and fixing parts of the property’s structure. For instance, if there’s a problem with the wall, window or roof, the landlord has to pay for the repairs.
Properly market your home
When you are set to rent out your home, we advise you to gather the qualities and ‘selling- point’ of your home because it will help your marketing strategy. Highlight those appealing features that attract tenants—for instance, dryer, freezer and composite fence. To boost your advertising efforts, use rental ‘buzz words’ such as ‘brand-new’, ‘ultramodern’, ‘up-to-date’, ‘stainless’ etc.
The next step is to list your property in prominent newspapers and websites. You can also hire the service of real estate agencies to help market your home.