Who doesn’t like a side project that makes them a little bit of money alongside while they carry on with their jobs or businesses? We are all looking for something like that. We all would like to save extra for our retirements or anything else that we want. One of the ways that many people do it is by buying a house so that they can rent it. This is a very attractive way of making money. You will find a lot of people in the market who have even rented out their properties and are living in small apartments. Some are even renting out a single room in their homes.
All this talk must have gotten you really excited, and you should be just about ready to hang the “For Rent” placard outside your home. But don’t do that just yet. There are a lot of things to consider before you make any kind of decision. Read on to find out exactly what you need to know and what you need to do before renting your property for investment and becoming a landlord.
Demand for Rentals
The first thing you have to do is to find out if there is a demand for a rental property in your area. It is the most crucial point to note as your objective for doing all of this is to make money. You will naturally have made all the necessary changes that a renter will be expecting from you. For example, whether you want to sell your house for cash in Raleigh or you want to set it up as a rental property, you will need to do some upgrades and repairs accordingly.
If you are doing it all for renting your property, then make sure that the demand for real estate in your area is high. This way, you won’t have a hard time looking for tenants. If the demand is low, you might be sitting on an empty property for a long time. Also, you might have to give it up for lesser rent that you might not have hoped for. So, do your research diligently before making any commitments.
Is Your House Rentable?
Once you have done all your research and you know that your house is sitting in a location that can easily attract tenants, it’s time to find out if your house is rentable or not. Yup! That’s a thing.
What it means is that you have to make sure that your house looks appealing and beautiful enough for people to get attracted to it. All you have to do is to conduct a survey of the real estate market and look at other rental properties to find out their features and the way they attract tenants. This might mean that you will have to spruce up a few things in your home or repair the things that need it.
Know the Law
This is again vital for you to know as you don’t want to do something or promise something that will make you go against the law. You have to conduct the whole thing in a very legal manner. This includes the collection of rent, termination of the contract, agreement contract, and the residential tenancy act. There are other things too, but this will get you started on your way.
The best thing for you to do is to consult an expert who can advise and guide you through the entire process. They will be able to tell you all the laws related to renting your house as a form of investment.
Know the Costs
Renting a home sounds easy, right? Well, don’t go and start expecting too much from it. Yes, you will be getting a decent amount that you can save every month, but don’t forget the cost of turning your house into a rental investment property.
You have to think about property management, maintenance, taxes, insurance, advertising, and a plethora of different things that you need to take care of before being a landlord and renting out your property. If you have done the real estate market analysis as we told you above, then this part will not be too difficult for you. It will cost you, but you already knew that from your prior research.
Another thing that you have to know is how much to charge tenants for renting your place. You should be aware of the rent in your area’s real estate market. You can ask your real estate consultant for some help, and they can advise you about the appropriate amount of rent you can charge.
Know Your Tenant
The last thing that you must know is how to find a good tenant. You can’t just hand over your property to the first person that walks in. You have to read their application thoroughly and do a little background check. Ask them for contact references and find out as much as you can about them before handing them the proverbial keys. We are sure that you don’t want to get stuck with someone who doesn’t pay rent or who treats your place like trash.
Here you go with all the things that you need to take into consideration before putting up your property as a rental. Make sure that you take each one of these points seriously and do your research before doing getting into this business. The more you know, the better it will be for you.
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