Renting out your home can be an exciting opportunity to earn some extra income or simply make use of a space that’s no longer needed. But to ensure it goes smoothly, there are a number of things to check off your list before handing over the keys. If you’ve never rented out a property before, it might seem like a lot to think about, but breaking it down into smaller tasks makes the process manageable. Let’s dive into what you need to do to prepare your home for renters.
Decide if Renting is Right for You
Before you start any work, you need to decide if renting your property is really the right move. Are you ready to be a landlord, or would you prefer to sell the home? Renting can bring in consistent cash flow, but it also comes with its own set of responsibilities. Consider the time you have to manage the property, the potential for unexpected repairs, and the fact that you’ll be responsible for maintaining a good relationship with your residents.
Set Your Rent Price
One of the first things you need to do when preparing to rent your home is determine how much rent to charge. Start by researching similar homes in your area to see what they’re going for. If your property has any unique features—like a big backyard or a remodeled kitchen—you may be able to charge a bit more. But it’s also important to stay realistic. Setting your rent price too high could make it harder to find a resident, while setting it too low might leave you with less income than you’d like.
Understand Local Laws
Before you move forward, take some time to familiarize yourself with your local laws and regulations. There may be rules around things like how much you can charge for rent, what types of security deposits are allowed, and the eviction process. Knowing the rules upfront can save you from legal headaches later. For example, some states limit how much you can increase rent each year, and in certain areas, you might need to provide things like smoke detectors or carbon monoxide alarms.
Clean and Repair the Property
Once you’ve decided to rent out your home and have a general idea of how much to charge, it’s time to get the property ready. The condition of your home is crucial in attracting the right residents. A clean, well-maintained home will not only make a great first impression but also help you avoid any complaints or issues down the line.
Start with a deep cleaning. You want everything—from the floors to the windows—looking spotless. It’s also a good idea to fix any broken items, like a leaky faucet, a door that doesn’t close properly, or worn-out flooring. You might want to do a few small upgrades like fresh paint or new appliances if your budget allows. Don’t forget to check for any pest issues. A pest-free environment is essential for keeping your residents comfortable and happy, so make sure to address any signs of pests before moving forward.
Make Safety a Priority
Security is another top priority. Ensure that all locks on doors and windows are working and that there’s proper lighting outside, especially near entrances. If your property has a garage or any shared spaces, make sure there are clear rules about who has access and how to secure those areas. It’s also worth considering additional security features, like cameras or motion detectors, to give your residents peace of mind.
Write a Clear Lease Agreement
A solid lease agreement is a must-have when renting out your home. This document should outline all the terms and expectations for both you and the resident. Be specific about things like:
Rent payment details:
When is rent due? How should it be paid?
Maintenance responsibilities:
Who’s in charge of maintaining the yard, changing the air filters, or handling minor repairs?
Pets:
Will you allow pets? If so, what kind and are there any restrictions?
House rules:
Any rules about noise, smoking, or parking?
Security deposit:
How much is the deposit, and what conditions will apply to its return?
A well-written lease protects both parties and ensures there are no misunderstandings down the line.
Prepare for Screening Potential Residents
Finding the right resident is just as important as preparing your home. You don’t want to rent to someone who doesn’t pay rent on time or who doesn’t take care of the property. Consider setting up a thorough screening process that includes:
A rental application:
Have applicants fill out a rental application form to provide basic information like employment history, references, and rental history.
Credit check:
This can help you gauge whether they’re financially responsible.
Background check:
Make sure they have no criminal history or previous evictions.
Interview:
A simple in-person or phone interview can help you gauge if they’re a good fit for your property.
Don’t skip this step—it’s key to ensuring your property is in good hands.
Consider Insurance
Renting out your property requires a different type of insurance than regular homeowners’ insurance. Landlord insurance covers things like property damage, liability, and loss of rent in case the property is damaged and becomes uninhabitable.
Check with your insurance provider to make sure you’re covered. You might also want to require your residents to have renters’ insurance, which would cover their personal belongings in case of damage or theft.
Prepare for Ongoing Maintenance
Once your property is rented, it’s not like you can just forget about it. Ongoing maintenance is a part of being a landlord. You’ll need to keep up with repairs, check the condition of appliances, and handle issues as they arise. It’s a good idea to set aside a maintenance fund for these unexpected costs.
Also, be proactive with regular maintenance, like cleaning gutters, servicing the HVAC system, and checking for any issues with plumbing or electrical systems. A well-maintained home means fewer headaches for you and a happier resident.
Set Up a System for Rent Collection
Decide how you’ll collect rent. While some landlords still prefer cash or checks, there are a variety of online payment systems that make rent collection easy and secure for both parties. Options like PayPal, Venmo, or specialized property management software allow for automatic payments and tracking, making everything more streamlined.
Make sure to communicate clearly with your residents about when the rent is due, how it should be paid, and any late fees that may apply.
Communicate Clearly and Professionally
Good communication is the foundation of a successful rental experience. Keep your residents informed about any upcoming repairs, inspections, or changes to the property. Also, make sure they know how to reach you in case of an emergency.
It’s also essential to stay on top of any complaints or issues that arise. If there’s a problem with a leak or a broken appliance, act quickly to resolve the situation. A happy resident is more likely to renew their lease and take better care of your property.
Plan for the Future
When you rent out your property, think about the long term. Are you planning to continue renting, or will you want to sell at some point? You’ll want to keep an eye on the market and assess how the property is doing over time. If you find that renting isn’t as profitable as you’d hoped, or if you decide you’d like to move back in, having a plan will help you make a smooth transition.
Renting out a home can be a great way to earn extra income, but it comes with a fair amount of responsibility. Things won’t always go as planned—there might be maintenance issues, problems with residents, or market changes—but if you’re prepared, you can handle whatever comes your way. From getting the house ready to screening residents and managing ongoing maintenance, it’s all about being organized, staying proactive, and maintaining clear communication. With the right preparation, being a landlord can be a rewarding experience.
