Renting out homes has become an increasingly popular trend. However, there are some important things you should know before you decide to become a landlord. Below you will find some of the things we think you should know before you start renting out your home. Please feel free to contact CENTURY 21 North East if you have any questions about purchasing an investment property or if you have questions about renting out your home.
Research The Market
Research the market in your neighborhood to choose a rent amount that matches local rates while earning you a profit. You can consider the square footage and number of bedrooms and bathrooms of your home. Don’t forget to factor in costs like pest control, lawn maintenance, and occasional home repairs.
Enhance Your Curb Appeal
The first impression of your home’s curb appeal can mean everything. Make your home look and feel inviting by keeping things clean and tidy. Add a welcome matt and nice flowers to further enhance a renter’s first impression.
Choose Tenants Who Are Financially Responsible
You should run credit checks for any potential tenant. This will give you a good idea if you tenant will be a good fit or if they are risky. On top of running a credit check, you could hire a reputable company that can perform a tenant screening on your potential occupants to find out if they’ve damaged previous rental properties or have a criminal record.
Plan For Financial Emergencies
Things happen and you may have to deal with unexpected emergencies from tenants like a broken water heater. To better prepare for these situations, it's smart to set aside funds. It’ll feel like less of a burden and ease some of the stress.
Get Appropriate Insurance Coverage
Along with setting up an unexpected emergency fund, you should also invest in getting proper insurance coverage. You never know when there may be an accident or damage to your proper so having the proper insurance can help you cover these things.