The average annual pay for landlords in the US is $73,659 as of 2022. This shows how investing in real estate is a lucrative business opportunity.
So, are you thinking about renting out your apartment? What can you do to make your home more appealing and memorable?
Preparing your property for rental is among the best real estate investment tips you should learn. It allows you to attract the best tenants.
Also, renovating your property can help you maximize your rental income. Existing tenants are more inclined to stay in a trendy house that is in good shape.
You want to grab people’s attention while they browse property listing websites. You want them to be pleased with what they see.
This may necessitate a thorough cleaning, the installation of high-tech fixtures, or hiring a gardener. It could also imply some artistic lighting and photography.
Read more to learn the real estate investment tips for preparing a rental home for first-time use.
Understand the Housing Laws
Being a rental homeowner doesn’t allow you to do anything you want with your property. You need to understand and comply with your state’s housing laws when renting it out. You’ll protect yourself from facing legal issues that can ruin your reputation.
To learn more about the state’s Fair Housing Laws, you can research them on the internet. You’ll find information about laws that govern the process of renting out properties. Also, you’ll learn the landlord-tenant laws that help you relate well with your tenants.
In addition to researching online, you can consult other landlords. Ask them about the legal ramifications of becoming a landlord. Seek clarification on the legal procedures taken when renting outhouses.
If you know an attorney specializing in housing laws, you can also seek guidance from them. They’ll educate you on mistakes to avoid when renting out your home. They’ll provide you with resources containing the local, federal, and state housing laws.
Some of the housing laws you should understand are:
- housing discrimination
- setting rental rates
- tenant eviction
- assistance animals, you should abide by
Also, understand legal issues involved with maintaining safety in a rental property.
Present the Rental Property in the Best Light
When renting out your house, ensure to present it properly to attract renters. Many tenants consider clean and well-maintained rental properties. So if your home is in bad shape, getting tenants can be difficult and time-intensive.
To make your rental home stand out, take time to clean and declutter it. Organize it and remove unwanted stuff that makes it look cramped and messy. If you have been living in the house, remove all your personal belongings.
By doing so, you make your house’s unique features stand out and create an inviting home. Your house looks spacious, and tenants can move around without bumping into anything.
Consider improving your rental property’s curb appeal to make it more attractive. You can achieve this by;
- planting flowers and trees
- mowing the compound
- repainting cracked walls
- pressure washing your driveways and walkways
- trimming overgrown tree branches
- removing spider webs and debris from eaves and windows
Amping your rental home’s aesthetic appeal makes it alive and welcoming.
To make renting your house easier, you can also stage it with decor and furniture. Home staging helps tenants envision themselves in their new homes. It helps create a good first impression for renters who visit to inspect the house.
Some of the ways you can stage your home when renting it out include;
- repainting rooms with attractive colors
- cleaning and decluttering
- adding new decorative items
- adding indoor plants
- renovating kitchen and bathroom
Implementing these tips highlights unique features and distract tenants from the undesirables.
Screen Potential Tenants Properly
Screening tenants when renting out your home for the first time is invaluable. It helps you weed out low-quality tenants and find the good ones. It minimizes tenant turnover saving you the tedious process of filling a vacancy.
Proper tenant screening also helps you avoid the eviction process. You lease your property to renters who pay on time and follow the terms of their leases. You avoid bad tenants who can damage your property and derail your profits.
When examining tenants, ask them about their employment and why they’re moving. Check their credit report, eviction, and criminal history to ascertain their legibility. Remember to ask them about who they’re and where they are coming from.
For a successful screening process, don’t take the tenants’ words of mouth. Some renters might lie about their background to avoid losing a chance to lease your home.
If possible, contact their previous landlord and ask more about their rental history. Confirm if the tenant owes them any debt or has caused any damage to their property. Find out if the renter was a nuisance to their neighbors or has been violating their leasing terms.
Remember to get in touch with the tenant’s employer to confirm if they’ve got a steady source of income. Some employers might avoid sharing their employees’ private information. So ask them to at least confirm if they’re the current tenant’s employer.
Develop a Lease Agreement
Before renting out your property, ensure to have a lease agreement. It sets out the terms of the tenancy between you and the tenant. It states the rights and duties of both parties during the rental period.
A good lease agreement should contain things like;
- description of the property
- names of the renter, landlord, or their agents
- amount of rent, due dates, grace period, and late charges
- mode of rent payment
- amount of security deposit
- ways to terminate the agreement
- rules and regulations such as pet and noise rules and penalties for violation
- property maintenance
If conflicts occur between you and the tenant, the agreement offers legal protection. Without this document, settling disputes with tenants can be difficult. So ensure to put everything into writing when renting out your house.
Use the Above Real Estate Investment Tips
Renting out your home for the first time can be exciting and daunting. You have a lot on your plate to ensure your business becomes enjoyable and less stressful. But you can learn real estate investment tips and ease your leasing task.
Are you looking to become a landlord? At Reedy & Company, we are at your service. We provide real estate investment opportunities for clients.
Contact us today for a free consultation.