Owning a property that you don't live in will allow you to make money off of it. It's always ideal to have extra income, and you can lease the home. However, if you want to avoid a lot of stress and enjoy the rewards of this situation, you'll want to be ready for it. Knowing the right steps to take as a landlord is guaranteed to be to your advantage.
Screen potential tenants
If you want to have a stress-free rental experience, you'll need to have the ideal tenant. It will take effort to find this individual, but you'll never want to sign a lease with a person you haven't screened.
Below are some top questions to ask beforehand:
- What is the amount of your annual income and can you prove it?
- Do you have any references you can provide?
- Have you ever been a tenant in the past?
- How long have you been employed at your current job?
Ensure the tenant gets insurance
Regardless of how careful you are, many situations can arise if you're a landlord. For instance, a fire could break out, or a catastrophe could occur. Requiring your tenant to get rental insurance will protect this individuals' belongings and prevent you from being liable for this expense in any way.
Set policies in place
The individual you have renting your home should be respectful of your wishes. This makes it critical to put specific rules in place to ensure your tenant know what they can and cannot do. For instance, you may prefer not to have pets in your rental. Other rules you may have are no extended stays by guests or no smoking in the home.
Prepare a lease agreement
The only way to protect yourself when you are renting out a home is to have a contract in place. This document should list all the terms and conditions of the lease that includes the length of the lease and the monthly costs.
Not having to worry about your rental property can enable you to receive an additional income with fewer worries. However, there are necessary steps that must be taken before you can enjoy this luxury. Setting the tone for your tenant to follow during this experience is the best thing you can do. Never enter a leasing situation without having full control, because this is something you may regret later down the line.
For more information about or assistance with your real estate for lease, contact a property management business.