Renting out your premises to a good tenant brings you abundant benefits. You are not only able to generate an income; you can stay easy about tax breaks, prevent vandalism that often occurs on empty homes and last but not the least, possibly create handsome profits. However, finding a good tenant is always not an easy task. Many folks that hurriedly rent out their homes without much due diligence face lots of hassle later. So rent out your home intelligently and avoid headache later. Given below are some tips to successfully rent out your home to the right tenant and enjoy peace as a landlord.
Step 1: PREPARING
- Be ready to shoulder responsibilities - As a landlord you cannot always assume that things will ever run smoothly. You will have the responsibility of dealing with maintenance and house upkeep, collect rent, and shell out money for your house insurance policy and so on. So, being a landlord is a responsibility that you'll need to accept into your life. But if you could find a good tenant, being a landlord would certainly be a breeze.
- Prepare your home before showing - A house that looks better is more likely to be chosen by a good tenant. Make your property clean and appealing for prospective tenants so they can visualize themselves staying cozily in your space. Get the yard cleaned as it makes a first impression on the visitors. Make sure to fill any holes or patches and paint the walls anew. Check if all the doors, locks, light bulbs and other appliances are working well before staging. Air the house well before showing it – open up all doors and windows. Allow fresh and clean air inside.
- Create a checklist of household things that you are offering on your premises - Prepare a list of items like door and window drapes, shutters, fans, light switches, blinds, plugs, shelving, appliances etc. and inform about this to your tenant. It is good if both of you sign on this document as it is also required by law. If preparing this document seems like a bother then check internet for reference.
- Keep your home paperwork in order - A professional landlord is one who has the correct paperwork in hand. You can check online about the right type of paperwork or contact the local residential housing department. Thus keep the lease or rental agreement forms, the tenant application forms and eviction notice (if a need arises) handy. Ensure that you have downloaded the correct forms and that all legal documents in hand are in par with the local province rules.
- Before placing your ad, research the rent rates - Understand the competitive rental rates from online rental sites. This will help ensure you are attracting the right rent. A little less price below the market rate can fetch you a good tenant for long term. So, don’t be very adamant about the price.
Step 2: MARKETING
- By word of mouth - You can email your friends and inform them that you’ve got space to rent. Sometimes when long term good tenants are vacating they can recommend their friends about your premises. As a result, you can have decent tenants for years.
- Advertising through a sign board - Put a sign board on your lawn or on the window of the property along with a contact number. This compels and announces many passersby.
- Advertising online - Placing advertisements online are good ways to fetch good tenants. Prospective tenants love to search such ads in these popular websites. Prepare a nice description and post high-resolution pictures to make your property appear attractive.
- Local Newspaper - This can be a fairly low-cost way to promote. You can get to know from your local classifieds agent which day of the week is best to advertise about your rental unit and get the best results.
Step 3: SHOWING
- Go for open-house - The best way to show your house is to have the open house method. Choose a time to show either in the morning or evening or during weekends. Interested tenants will arrange to view the property during such slots and you may even find your prospective tenant face to face. Arrange to have a second meeting if required. Your house must smell fresh and look clean. You can be casually attired with handy paperwork with you.
Step 4: SCANNING
- Scan the tenants - If you feel anyone is a tenant material then ask them to drop their applications. Review the applications and choose your tenant. Your chosen tenant should be able to pay the rent and also take good care of your property. You can run a credit check, a reference check but at the end, depend on your instincts when selecting a tenant. If a prospective tenant seems to throw positive vibes among the lot, then he/she is your pick!
Time and efforts invested in finding a good tenant makes life much easier for a landlord. However, if you are tied up with work or don't want to take the hassles, it is advisable to hire a real estate consultant.