Whether you’re renting out your home or you’ve purchased your first investment house, transitioning into a landlord is a big deal. While the prospect of an additional monthly revenue stream is enticing, several responsibilities and tasks come with it.
This guide will explain four tips for renting out your home for the first time.
1. Carefully Screen Your Tenants
The right tenant can make or break your renting experience. You want to define your standards before you start accepting applications. This ensures you compare every applicant to the same requirements for a fair determination. Look into these aspects of a tenant before approving them.
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Credit score and report
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Criminal history
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Renting and eviction history
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Rental references
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Current job stability and income level
If this sounds like an intensive process, you’re right; it is. But the better you screen tenants, the better your odds are of selecting the best tenants possible for your property. Working with a property manager can assist you with this screening.
They already have the accounts in place that are necessary for running many of these checks. They also have experience with screening tenants and can assist you in creating unbiased screening standards.
2. Do Major Maintenance and Renovation Work First
If you know that your rental house needs maintenance and repair work, do it before you market the property. With the work already completed, you’ll be able to command a higher rental rate. You’ll also have a more desirable property that will attract better tenants.
Having the work done in advance also limits your interruption of the tenant. It’s much easier to schedule contractors to work on the property when you don’t have to accommodate a tenant.
3. Learn the Law
There are several laws that protect both landlords and tenants here in Texas. You need to understand the law to ensure you fulfill your duties and protect your rights as the landlord.
There are laws that pertain to every step of the renting process, so it’s prudent to learn the law before you decide to rent. It’s much easier to take your time and learn in advance than to figure out the law in the middle of a situation.
If you’re unsure of how to find the relevant laws or uncertain of how they pertain to you, then it’s wise to seek out a real estate attorney. They can help explain the law, how it applies to you, and how you can abide by it.
4. Collect Rent Online
Never accept cash payments for rent. Cash isn’t easily traceable and presents a security risk for you. While you could accept checks or other forms of traceable payments, the best option is to arrange for online payments.
Collecting rent online eliminates several steps in the paying and collecting process for both you and the tenant. This makes it faster, safer, and easier for everyone. Plus, the easier it is to pay rent, the more likely your tenant will pay.
If you aren’t ready to set up a tenant payment portal, then working with a property manager is a smart option. They typically already have an online tenant portal system in place. They can then collect the rent and manage tenants for you.
A Property Manager Can Help When Renting your Home
Renting out your home is a perfect opportunity to generate additional cash flow. With the right tenant, you can grow your wealth and invest in real estate. By keeping these four tips in mind, you’ll avoid many of the mistakes that first-time landlords make.
If you have any questions or need further guidance, our team of knowledgeable property managers can help. We are happy to discuss your needs and how our services can make your first time renting a successful one.
Contact our experienced team today and let us help you make renting your home a pleasant experience.
