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There are many reasons you might be one of the many homeowners wondering how to rent out your house: Maybe you’ve tried to sell your home but the market’s too sluggish, or you’re moving to a new area but want to hold on to your old property and rake in some income on the side.
Whatever the reason, it’s a good time to be considering this, because the rental market is hot. But renting out your digs for the long term is a very different animal than the occasional stint on Airbnb. Here are some basic steps to take to get you started down rental road.
Determine how much to charge in rent
At the least, most newbie landlords want their rental income to cover their monthly mortgage, as well as taxes and insurance. Times may have changed since you bought, so you want to be clear on what the market will bear.
Screen tenants carefully
You’ll want to check potential tenant’s employment history, credit history, and income (via pay stubs or tax returns), as well as references from past landlords if possible.
To add an extra layer of security, you can do statewide and federal background checks at places like the National Tenant Network, which has been screening tenants since 1980, to make sure potential renters don’t have a checkered history elsewhere.
Decide whether to manage your property yourself or hire help
It may be tempting to manage your property yourself when you consider that property managers typically charge 4% to 12% of the monthly rental. But that might be a small price to pay for avoiding headaches with your rental.
Pick the right property manager
Picking a property manager isn’t just about finding one with the lowest fees. Fees are important, but don’t let that be the sole deciding factor. For instance, what are the property manager’s hours? If they’re available only during weekday business hours and a pipe bursts on the weekend, you may get stuck with coming to the aid of your tenant yourself. What happens if rent isn’t paid on time—will they pursue the matter? If not, you may get stuck chasing down your money, which rather defeats the purpose of having a property manager at all.
Also make sure that the property manager—and you yourself—are committed to keeping up on local laws. Laine cites a recent case when the local municipality enacted laws that hold landlords liable for bedbugs.
Because at the end of the day, hired help or no, the buck stops with the landlord, literally.
The last step is to call us to find out how we can help you with all of the above. We could already have a tenant for your property.
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Jame Silver
Team Leader & Associate Broker
James Silver Team, Michigan & Florida
(248) 530-7292 | JamesSilver@kw.com
