Did you know that over one-third of U.S. residents rent their homes? That's 42.9 million households.
For many Americans, the cost of buying a house is out of reach, so they're looking to rent a home.
Do you have real estate you'd like to rent? Perhaps you want to bring in money to cover the upkeep of a house you're not living in. Maybe you don't want to leave a property sitting unattended for long periods of time.
Placing a for rent by owner ad could be the answer. But do you know how to rent a house?
Keep reading to learn how to go about renting out your property on your own.
For Rent by Owner
Before you do anything else, make sure you're ready to become a landlord. There are many responsibilities that come along with the job.
A landlord needs to attend to repairs and routine maintenance, keep an eye on how tenants are treating the house, and, of course, collect rent.
Consider creating a management plan to make sure you cover all your bases. Decide who will monitor the property on a day-to-day basis. You can do that on your own or hire a property manager.
Speaking with a financial advisor is recommended. They can help you figure out how much money to set aside for insurance and taxes and how much you will need to charge in rent to cover expenses.
A lawyer can also be a great source of information about how to prepare a lease. The lease should be thorough in covering the rights and responsibilities of the landlord and the tenant. The lease should also adhere to local rental laws.
You'll need to make sure your house is ready for renters. Make sure it's freshly cleaned and any maintenance issues have been handled. Take photos of how the house looks to keep in your records.
Finally, to get the word out that you have a house for rent you can place ads in newspapers or online. You could also hire a property management company to take care of renting out your home.
Finding a Good Tenant
You've done all the preliminary work for your DIY home rental. It's time to find a tenant. Since this is a person (or people) you'll be entrusting your home to, don't rush this process.
As you meet with potential tenants, you should be able to get a feel for whether or not they would take good care of your house.
After you narrow down a list of people you are willing to consider taking rent from, have them fill out an application. Make sure to contact references and complete a background check and a credit check. Use all of this information to choose the best tenant for your house.
When you've made your choice, do a walk-through of the house with them, go over the lease and get it signed, and collect a security deposit.
Doing It for Yourself
By deciding to put your home up for rent by owner, you're in control. There are many things you will need to do to successfully prepare to rent your house. Take the time to do it right.
If you need more advice about how to go about renting out your home, give us a call, and we can walk you through every step.