A majority of people, at one time or the other, contemplate renting their homes out. Most people who think of this idea often want to benefit from the extra income that comes with renting the property out. While it may seem to be a beneficial option, turning a house to a rental property can be troublesome if not done prudently. Thus, one must equip themselves with some important tips before they can rent out their house. First, you should always guarantee safety for your tenants. You need to ensure that gas piping is done appropriately. Reviews sites, including Britainreviews.co.uk, will help you with online reviews about gas supplies in UK; from the reviews, you can be able to see the feedback from previous clients who have used the gas company. You are thus able to choose a reputable company. Other important tips to know before renting out a house are discussed below.
Have a lease to protect your rights
A written lease is essential when you are renting out your house. It helps both parties have a good understanding of their obligations and rights. Qualities of a good lease include, it should be compliant with fair tenant, housing, insurance and rental laws of your area. These laws differ from one region to another. To ensure compliance, always ensure that you work with a local lawyer to make your lease agreement. In addition, the following should be included in a lease:
- The term of the lease-Depending on whether you are leasing or holding on to the property, different lease terms will be suitable. If you will be holding on to the property, going for an annual lease will offer more stability. On the other hand, while selling a property, you will achieve much stability with a month-to-month lease.
- The number of tenants.
- A security deposit, typically for one month or even a longer duration
- Who’s responsible for repairs
- The due date of rent and penalties for late payments.
- Responsibilities of maintenance and routine upkeep, for instance, lawn care.
- Rules relating to behaviour such as smoking, the conduct of a tenant and allowed levels of noise.
- Terms of evictions including damage of property and failure to pay rent
- Policies of pets and any associated deposits
Look for good tenants
You can use various ways to look for tenants, including advertisements in both online and print local newspapers. You can also use co-workers, friends and relative to spread the word. Once you get potential tenants, request them to fill an application form and list their basic information including, their employer, name, previous landlords, references and salary. You will also require their social security number and authorisations signed to check their criminal history and credit reports. You can hire a professional agency to help you with the background checks. If you prefer performing the background checks by yourself, the following methods can help.
- Examining their criminal history: search online local or state records.
- Pulling their credit reports: There are various credit reporting agencies you can contact to help you out with a tenant’s credit reports. Research the agencies available locally.
- Checking references: Talk to former landlords and former employers.
Have insurance to offer protection to your property
Having the right insurance policy on your rental property is very important. You need to understand that you require a different policy when renting out your property as opposed to when you are utilising it for residential purposes. Typically, when using the property for residential purposes, you had a homeowners insurance policy. A homeowner’s insurance policy covers; legal costs, home’s structure, loss of rental income, legal costs and repairs when they are required. You’ll not be responsible for a tenant’s possessions, so you should encourage them to have renter’s insurance.
Have knowledge of the law
When renting out your house, you need to be aware of the law. Each locality has specific laws that guide issues such as evictions, when you can gain the property back after tenants have occupied the residence and on security deposits. Additionally, tenants have particular codified rights which can differ from one region to another, and violating them could have you sued. You can get some pre-printed summaries of laws relating to the rental property at your local housing authority, or at least the local authority can guide you on how to access them. One of the critical areas to aim at understanding include issues relating to housing discrimination.
In conclusion, if you’ve been thinking of renting out your house, you need to be prudent on how to go about it. Above, you have important tips on how to go about the process seamlessly.