Owning a rental unit has a variety of benefits such as cash flow from rental income. In order to rent out your house for the first time, you should educate yourself on some important aspects of the process. It is necessary to be aware of housing laws in your area, tenant screening process, lease agreement terms and knowledge of other important requirements.
Listed below are some useful tips for renting out your house for the first time:
- Know The Law: Educate yourself on the laws pertaining to rental properties in your area. For example, every state has laws on preventing discrimination of tenants (on the basis of race, color, sex, etc.), property safety, tenant eviction, etc. For information on legal aspects of owning a rental property, it is advisable to hire a property manager.
- Work On Presentation: Present your property in a way that makes it appealing to prospective tenants. Highlight its best features, clean it thoroughly, repaint it, boost its curb appeal with landscaping, etc.
- Screen Tenants: To select quality and reliable tenants, ask your property manager to conduct tenant screening. When questioning them, there should be a focus on details such as employment status, criminal history, credit report, eviction history, etc. A proper screening procedure will minimize evictions, reduce property damage and save your time.
- Formulate A Lease Agreement: Every term, condition, rule, and agreement that you agree with your tenant should be written in the lease agreement. This agreement plays a vital role in offering legal protection in case of disputes related to the rights and responsibilities of the parties involved.
- Price It Right: The price of a rental is one of the most important factors for attracting tenants. When setting the right price for your rental, assess your total expenses and mortgage payments to derive the value of your property. Thereafter, compare it with the value of other rentals in and around your area.
- Maintain A Bookkeeping System: First-time property owners should be disciplined about maintaining financial records and paperwork of the property.
- Take Inventory: Prior to handing over the rental’s keys to a tenant, a property owner should conduct a walkthrough and record the condition of the property at that time. A record of the same should be signed by both parties.
- Protect Yourself: Get yourself insured as a property owner to enjoy protection from missed payments, legal expenses, vacancies, accidental damages and the like. Also, ask your tenants to get renters insurance for protection against unforeseen events.
The agents at Lone Star Realty & Property Management, Inc. assist property owners in renting out their property. The agents are well-versed and have years of experience in the real estate market. For further details on renting out a house for the first time, visit 1020 West Jasper Drive, Killeen, TX – 76542. You can also contact: (254) 699 – 7003.