Are you looking into renting out your house? If so, you may want to consider putting up an ad for your house on a property listing site like DDProperty. Whether you want to lease your home for extra income to pay the bills or you are waiting to sell until the housing market improves, leasing your property can prove to be quite difficult. Read these tips so that you can successfully find the right tenants while also making a good amount of income for yourself.
- Understand the Obligation of Being a Landlord
Before even preparing to lease out your home, you need to determine whether you can handle the responsibility of being a landlord, according to Investopedia. While leasing your property can provide a number of benefits, including additional income and tax breaks, there are a number of challenges. For example, you hold the responsibility of any repairs or maintenance, collecting fees and creating and maintaining an appealing home for potential candidates. If you feel that you are unable to handle these obligations, it is probably best not to move forward with leasing out your property.
- Prepare Your Home
You need to prepare and improve your property before listing it on property listing sites, especially in a down market, since people tend to be much more attentive to detail and selective. In a market with people who have high expectations, you need to both thoroughly clean your home and make sure that all of your appliances are in good working condition. If you are merely leasing out one specific area or room within your house, make sure that room is separated or secured from the remainder of the area.
Once you have prepared your place of residence, you can create a list with all of your home’s or room’s attributes. Include features like an in-unit washer and dryer, air conditioning units or a garage, as well as other desirable appliance or kitchen features like granite or stainless steel. Make sure that you post your ad on multiple property listing sites as well as in local newspapers. Consider on and off rental seasons. People tend to move in during the spring and summer. March through August is often the best period to offer your house to possible tenants because these types of properties are in higher demand during that time of the year.
- Hire Attorneys and Other Professionals
After you have prepared to list your residence, you should speak with attorneys and other professionals to ensure that you are following all applicable tax laws and local property rules. The IRS states that all rental income should be reported on your tax returns. You will probably qualify for tax deductions, but you should also know which of your expenses are deductible and the limit on deductions you can take each year. Hiring an attorney will help you navigate all of the tax laws and landlord-tenant laws, which tend to vary from state to state. You should also ask an attorney for help with drafting the lease to make sure that you are following all local laws.
- Set a Competitive Price
You should research the other properties in your neighborhood or area before setting a price. Make sure that you set your rates at a competitive price while emphasizing the desirable features of your place, in order to get the best out of your experience of renting out your house.
- Screen Tenants Well
According to United Services Automobile Association, you should screen all of your tenants very carefully before leasing to them. Make sure that any potential candidates can both pay their dues on time and keep your house in good condition, especially if you are planning on selling within the next few years. If you are planning on living with your tenant, learn their habits and determine whether their lifestyle will clash with yours.
In order to ensure that you are getting the best information about potential tenants, gather references and check their credit histories thoroughly. Take safety precautions while screening all of your candidates, since these people are strangers. Once you’ve determined which person you want to lease your house out to, make sure that you ask for a reasonable security deposit and work out a payment schedule.
Renting out your place during an economic downturn can be beneficial to both you and your tenant for a number of reasons. This ensures that you have someone to keep your place in good condition until the market improves. An empty structure often means that you are leaving your house vulnerable to vandals or thieves. This also gives you additional income, helps you pay the bills and gives you tax breaks and deductions for many expenses. However, it is essential that you take the time to examine the challenges of being a landlord and properly prepare your home before listing and leasing to interested parties.