Maybe you’re thinking of renting out your home, or you’ve found a great investment property. Whatever the case is, congratulations, and now is the time to get your property ready to rent.
Undoubtedly, real estate is the most profitable source of side business these days.
Countries like America and Canada have the most active real estate investors. Hence, to make sure one succeeds in this business, proper planning is necessary.
Although the entire process of getting your property ready can seem like a daunting task – if you haven’t done it before, it is a pretty straightforward process.
In fact, the process can be exciting if you have a proper plan in mind. From preparing your home for all the necessary repairs and upgrades to preparing yourself, there are a few steps to follow.
This article shares a step-by-step guide for homeowners who wish to rent out their property. Read on.
Tips to Prepare Your Home
Before you start advertising your property, it is essential to keep it in a rent-worthy shape to attract potential clients.
While the legwork you need to perform will depend on the type of property you’ve purchased, it is wise to go through some common steps to ensure that you’ve covered all your bases.
Here are a few steps you must follow:
1. Do a Proper Inspection
The first and foremost step is to do a proper inspection of your property. This should include everything from the basics to major upgrades that need to be done.
Make an extensive list of all the things that need to be taken care of before you get a tenant in.
After a thorough inspection, split your list into two parts; immediate repairs (such as missing bulbs, roof repairs, and sagging gutters) and other repairs that can be postponed for the future.
2. Check for Repairs and Upgrades
Once you have made a list, it’s time to work on the repairs and get done with all the necessary upgrades.
This covers tasks like changing outdated fixtures, checking that all shower heads are still operational, and ensuring that all appliances are working properly. Maintenance is also very important.
If items are just beginning to show signs of wear, you might not need to conduct a comprehensive renovation.
However, bear in mind that worn-out flooring, damaged fixtures, and excessively dated features won’t help your house command the highest price.
3. Have it Properly Cleaned
The impact of a freshly cleaned property can be huge. No client would want to even take a look at a property with musty smells, grubby fingerprints on the walls, or stained carpet.
Hence, make sure to get your property thoroughly cleaned by professional cleaners.
Prioritize deep cleaning to get rid of dust, including the carpets, as the clients will be noticing each and every detail before they make their final decision.
Next, you need to ensure that you prepare yourself as well to provide your tenants with a nice experience.
4. Understand Your Responsibilities
Before you rent out your property, it is critical to make sure you are informed of your duties and responsibilities as a landlord.
You’ll want to make sure you are aware of your state and local regulations, so you don’t unintentionally break any crucial rules and guidelines that differ from state to state.
Despite the fact that laws vary greatly, most of them fit into one of the following groups:
- Security Deposit
- The Eviction Process
- Disclosure of Owner
5. Decide the Rent
You might already have a rough figure in mind, but it’s time you determine the actual price to proceed further.
For deciding on a genuine yet profitable rent, it is advised to take a look at different websites to see what other realtors are charging for similar properties.
After analyzing the market trends, decide on a figure that best complements your offer.
You should also decide on the security deposit amount, but keep in mind that you should verify your state’s laws to make sure your plans comply with any restrictions that may be in place.
6. Don’t Forget the Insurance
Despite the fact that the mortgage is paid off, keep your insurance.
Before bringing in tenants, ensure to speak with your insurance company to determine whether the policy may be changed to reflect the fact that the coverage for a rental property differs from that for a house.
For this, Get in touch with an Edmonton Insurance Broker to know your options and upgrade your insurance policy. Hiring a professional will help you get done with all the insurance stuff quickly and will save a lot of your time.
7. Get Done With the Paperwork
The rental agreement is the foundation of your investment, even though it might not be the most pleasurable part. Hence, it’s crucial that you make a rent agreement that will cover all of your bases.
When it comes to obligations and criteria, a strong rental agreement will keep you and your tenants on the same page. It will also assist your tenants to understand what is expected of them.
Besides, your agreement should comply with federal, state, and local laws. Make sure to include everything, from the length of the lease, how the security deposit will be handled and returned, when the rent is due, and the policies governing late fees.
8. Have a Proper Plan for Management
If you haven’t previously, you should also have a strategy for taking care of the property using some tips for commercial property maintenance.
While many first-time landlords start out doing everything themselves, you could discover that managing rentals eventually becomes too much labour.
One choice that long-distance landlords or those who intend to invest in numerous homes sometimes choose is outsourcing to property management.
The Bottom Line
Once you have successfully completed all the steps of getting your property ready, you can now begin the process of advertising and finding potential clients.
To find the right clients, you can collaborate with a real estate broker who you can trust. And that’s it.