Homes will always be in demand. They shelter us from torrential downpours, billowing gusts of wind, cloudless days of sunshine, people, animals, and everything else under the Sun. Since homes will always be valuable – unless they’re seriously in bad shape – they make a solid investment for really any investor across the United States.
Let’s assume you want to diversify your investment portfolio with a rental property. A good rule of thumb to know whether you’re ready or not to become a landlord is the test of home ownership. If you fully own a home, aren’t in love with it, and thinking about moving into a new one, consider renting out that residence. Here are seven tips you should follow when renting out your home.
1. Who do you trust?
“Who do you trust?” is a question that can be applied to everything in life. Think about all the ways you can apply this self-inquiry in real estate. Do you really trust a tenant?
Most people, tenants included, are good-hearted. However, you’ll never get tenants to ‘fess up to all of their shortcomings. Background checks do, in fact, speak the truth and nothing but the truth. Seek out criminal backgrounds, credit reports, references of past landlords, and self-performed reputation checks of those tenants with friends, family, and associates.
2. Don’t feel pressured into offering below-market deals
As you know, you’re liable for any and all damages that tenants are responsible for. You’re on the hook for costs associated with finding suitable tenants like advertising and showing properties. Don’t sell yourself short by renting for less than market value.
3. There are plenty of renters out there
Recent research from the United States Census Bureau indicates that the country is home to more renters today than ever before. Roughly 37 percent of households are rented today. The last time this metric was that high was 1965.
If you don’t get the home rented as soon as you’d like, wait for a little longer – you should have good luck in today’s market.
4. Hope you can afford an attorney
Legalities regarding rental housing are complex and difficult to learn without expert assistance. Get with an attorney to make sure you do everything the legal way.
5. In insurance out of your budget?
If you can’t afford homeowners’ insurance – ranges in the hundreds of dollars per month, on average – you shouldn’t be renting. Purchase a valuable insurance policy in case your precious home gets manhandled.
6. Small, single-family homes should fare well
More than ever before, renters are opting for single-family homes. Since you’re interested in renting out your own home, it’s probably somewhere around this size. Consider not renting your own home if it’s a large house or multi-house property.
7. Don’t underestimate the power of paint
A new coat of paint can inject pure, pharmaceutical hope directly into the life of the residence you’re considering renting. Further, make sure to invest in plenty of plastic drop sheets and painter’s tape to prevent making costly mistakes.
The United States has been considered a world leader in entrepreneurial success rates thanks to its number-one economy. As such, you shouldn’t have too many problems insofar as generating revenue from maintaining rental properties. However, don’t forget to follow at least these seven tips when renting out your home.