The choice to rent out your home is a personal one that involves assessing your comfort level for risk, responsibility, and potential mishaps along the way. But there are also many rewards to consider, especially in terms of the financial gains you could stand to earn. If you’ve decided to rent out your home, here are some important things to know as you set up your rental property.
- Determine how much you will charge for rent – The market will dictate what you can realistically expect to earn in rent from tenants. To determine your rate, check comparable listings in the neighborhood or talk to a realtor. If your home will be used more frequently for short-term rentals rather than long-term tenants, you’ll want to do the math on how many renters you’ll need per month to meet your financial obligations.
- Write a lease – Protect your rights by establishing a rental lease agreement and rental policies. It’s also wise to educate yourself on landlord tenant laws to ensure that both party’s rights and obligations are protected. Your lease should clearly spell out the rental terms and conditions, deposit, penalties, responsibilities for repairs and maintenance, and more. Consult a lawyer to be sure your bases are covered when it comes to the written lease.
- Market your property – Make a plan for spreading the word about your place. Just like when you list a home, listing a rental property is all about staging it effectively and showcasing it professionally online. High-quality photographs and video tours give potential tenants an opportunity to see and experience the space virtually before touring it in person.
- Screen potential tenants – You wouldn’t trust just anyone to live in your home so make sure you screen potential tenants carefully. For long term rentals, gathering references and checking their credit histories are common screening practices.
Depending on your comfort-level with serving as the landlord for your property and how hands-on you want to be with the process, you may also consider enlisting the help of a property management company to take over much of the rental responsibilities.
Renting out your home can be a smart investment opportunity, but it’s not without its share of work. If you have questions about the South Florida real estate market, please get in touch with us at Drew Kern Real Estate.