If in case you are unable to sell your house, it's a better option to lease it. Leasing will actually keep on getting some income from that investment. Although finding a good tenant can be a daunting task, but it can be easier if you know the basic things before renting your property. The article discusses the major things an owner shall know before renting the apartment.
Determine How Much Rent to Charge
Because renting is all about making money from invested property, the amount will be fixed properly. Knowing the current market value can be a great idea. You can go through newspapers, neighborhood rental signals, online resources, etc. to know the exact leasing value. Remember, it's really important to fix a reasonable leasing amount because incorrect or the excessive demand may not get you the right tenants. And, if in case you get them, they may not like to stay back in your property for long because of the incorrect leasing value.
Know thy Tenant
Although, renting to someone known like your friend or relative, gives you an assurance of their goodness, but most of the times it's difficult to enforce the leasing terms on them. So, it's better to find someone out of your circle to rent your house. Certainly, there is a risk in doing so, but that can be avoided if you screen your tenants properly.
• Know about their family background.
• Know the family size
• Get an idea of the behavior from the previous residence.
• Inquire the occupation and the financial status of the tenants.
• Inquire if they do not have any credits pending.
• Check for the criminal record.
• Find if they can be relied on.
Know the Laws
Being an owner, it's not necessary that you can lease it the way you want. You certainly need to know the laws in order to make the deal efficiently. So, you can consult a certified agent or an accountant to know about the housing laws. Because the professionals know even the minor laws related to leasing a property.
Additionally, make it a point to not to involve in the verbal or the informal agreements. It can put you in a trouble. And, doing such informal thing may not let you impose the leasing terms on your tenants.
Get Your Property Insured
It is extremely important to get the insurance done. Keep in mind that there is a different insurance policy for the owners and for the renters. However, a rental insurance deal will include legal costs, house structures, damages, your belongings, tenant's belongings, a list of needed repairs, etc. This policy actually protects you from paying off large amounts, if any unexpected thing happens.
Occasionally, renting an apartment is a responsible task. An owner must know the basic and the important things that would be considered before renting an apartment in order to avoid any misfortunes in the future.