How to Rent Out Your Home

How to Rent Out Your Home

 

 

 

 

 

 

 

 

Did you know that the Calhoun Team Realty is also in property management? Give us a call today (248) 905-1402!

Becoming a landlord is like everything else, it comes with responsibility. Doing so you have to make sure your property is safe and presentable for respectful tenants. You will need a home inspection from your city. A good looking house will not only increase your chances of obtaining a respectful tenant, but it will also give you a better opportunity to raise the rent of the property.

Is It Functional?

Plumbing is an essential; for it will give the tenants comfort when there are no water issues.

If you have an older home, make sure the electrical wiring is well taken care of. Not only your home will have proper electricity, but also your tenant wouldn’t have to worry about any potential safety hazards.

Freshness + Cleanliness = Happy Tenants

New paint, new carpet or wooden floors is a plus for tenants. The fresher the better!

  • Check each room and see if everything is up to date. That means all the light bulbs are new and electrical outlets and switches are functional
  • Make sure the stairs are safe to go up and down
  • All the doors knobs are in good use
  • Make sure the appliances are new

(If they are not new then make sure they are functional and well maintained)

  • Make sure the roof is good and the gutters are clean
  • It wouldn’t hurt to have the front and backyards nice and presentable

Your Home Status

You must contact your mortgage company and let them know that you are no longer a resident and want to rent out the property. The company will give you permission to rent it; also you may have to pay a small fee.

Changing Homeowner’s Insurance

You must switch your landlord property insurance to rental property insurance. The policies are different and brace yourself because rental insurance is going to cost you more than your homeowner insurance.

Who’s the Manager?

Are you going to hire a Property Manager or are you going to handle it yourself?

  • If you like to save money then manage it yourself, but it is not an easy task for it will be stressful for you. For you will have to negotiate a price for rent, handle the lease signing, gather the rent, handle the repairs, and be the main person to call when something goes wrong.

 

  • Most property managers will charge you 10% of the rent, but they will handle collecting the rent, and handling repairs. Making it a lot easier for you. A lot of landlords choose a property manager to handle their property for its less stressful and a time saver for them (Want to get started with the right property management? Call the Calhoun Team Realty (248) 905-1402 and we will get started right away).

 

  • There are some property managers that will work with you by doing certain jobs for you. For example if you’re ok collecting the rent, interviewing tenants, but you don’t want to be responsible for the repairs or maintenance, you can hire the property managers and they can be responsible for those jobs instead (Want to work with property managers that are reasonable? Call the Calhoun Team Realty (248) 905-1402 and we will get started quickly).

Take your time with this, for it’s a serious decision.

Rent

 

Another serious decision to make. With proper research you need to decide a reasonable amount to charge your tenants. Remember you don’t want charge too low because you will not make a profit and also if you charge too much you won’t make any profit, for no one will pay for something that’s overpriced.

 

There’s a couple of ways to handle this.

 

You can hire property manager(s) and they will do the work for you on estimating a good amount on rental property.

Or

You can do the research yourself by going to different sites and find similar properties and see what they charge. Take a look at Rentometer.com for it will help you decide if you are charging too much or less on renting out your property.

Remember!

Experienced landlords mostly put away 20%-25% of rental income for future maintenance or repairs.

It’s a good move to rent out your property, but be aware of the stress and responsibility of financial accountability that comes with it.

 

The Tenants

After you know all the basics of renting out you property, it’s time to discuss another important aspect of renting out your property. The tenants!

Interview Tenants

By now a bunch people have responded to your ad, and someone wants to rent. There are many ways of picking out the right tenant through an interview. Here are a few suggestions that can help you have a better idea.

Applications

With this you will know their basic information, contact information, and so on. Also you will know if they are unemployed or if their income will not pay the monthly rent.

 

 

Remember!

Not only treating people differently is wrong, but also it’s illegal, so it’s highly recommended to treat people fairly, and give everyone the same opportunity. No matter whom they are.

Facts

Sometimes we take chances on relying on our gut, but this is not the time to do that. For it may cost you in the end, so to avoid that try relying on facts and you can do that by making sure you check the tenant’s credit and checks. Sure the tenant may have good intentions and show a good 1st impression, but when it comes to renting out property should be taken in some serious consideration.

Conducting Credit and Reference Checks

This is similar to filling out an application. With this tactic, you can shorten the list of those who can qualify or not by checking their background as if they have a criminal record and so on. Also, you can see their history to see if they have a good reputation of being a tenant or may have a habit of being evicted. Either way, you will be fully aware.

Security Deposit

Most times the security deposit can be handed to you as a landlord as an agreement with the tenant that they can rent the property. It’s the first and last month rent. Just in case the tenant wants to move out the deposit can cover the last month payment. It is recommended to let the tenant make a check and clear it before you go anywhere with the arrangement.

Lease

Pick a time to meet with the tenant and sign the lease together. Make sure both sides have their own copy of the lease. Before signing, make sure you and the tenant are on the same page of the arrangement, doing this will make things run smoother in the long run. When both sides have agreed, sign the lease, and keep a copy of the documents.

Rent Collecting

You can collect the rent in different ways. Collect the rent monthly from your tenant and deposit it. Before you sign the lease the tenant should be aware of the consequences when they are paying past their due dates.

Availability

Time will past and the tenant will come across issues on the property. It may be an emergency situation. With that said your tenant must have a way to contact you by phone, text, email, etc.

Doing Your Part

If it is written on the lease that you are responsible for the yard maintenance or trash pickups, make sure you take care of it in a timely matter. Doing so will build a good reputation as a landlord and also will increase a good connection between you and your tenant(s).

Eviction

Nobody wants go through an eviction, but it’s highly recommended for you to follow the law and hire a lawyer, so he can assist you. Doing so will help you solve the conflicts between you and the tenant. Eviction is something you truly want to avoid for it can be long and costly. No one can tell the future, but you have to be extremely careful when it comes to looking for a good tenant, so you can avoid situations like this.

 

If you don’t know, the Calhoun Team Realty is in property management. If you want the best assistance on managing your property give us a call today!

Helping Tenants find a good landlord in Southfield, Beverly Hills, Lathrup Village, Birmingham and other metro Detroit areas Slide Happy Families walking away from foreclosures to short sales in Lathrup Village, Southfield, Beverly Hills, Birmingham and other cites in Michigan A shiny house representing on how we are helping people with their Curb Appeal in Beverly Hills, Southfield, Lathrup Village, Birmingham and other metro Detroit areas Slide. Helping those on how to rent out their homes in Lathrup Villiage, Southfield, Beverly Hills, Birmingham and other cites in Michigan Slide. Helping Tenants in Birmingham, Lathrup Village, Beverly Hills, Southfield and other cites in Michigan to stay on their landlord's good side slide Helping homeowners understand the Definition of a Deficiency Judgement in Southfield, Lathrup Village, Birmingham, Beverly Hills, and other metro Detroit areas.

 

 

 

css.php