“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” – Franklin D. Roosevelt
If you weren’t already convinced about the value of owning real estate and then renting out your house, this quote should be enough to lure you in. But as attractive and fruitful it may appear, how to rent out a house isn’t all that simple.
Without the proper knowledge, research, and professional assistance, you may not get the profits that you were expecting and may even under-utilize your property. To prevent this from happening, we will discuss six ways in which you can ensure that you rent out your house at the right price and to the right tenants.
What to Do When Renting Out Your House
- Follow these steps before handing the keys to a new renter.
1. Evaluate your house
This is the most important thing to do before renting out your house.
While your property’s value is linked with many other factors including its size and location, the physical condition of your house is equally important. No matter how big your property is or how prime its location is, at the end of the day, your tenants have to live in the house itself.
None of those other factors really matter if they find the living conditions unsuitable. So before you rent out your house, thoroughly inspect your home and make sure everything is functional, clean, and safe. Once this is ensured, you are most likely to rent out your property at the price you want and whenever you want.
2. Make the property look appealing
While tenants are not as picky as property buyers, you still can’t simply sell anything to them.
Renting out your house will require you to make enough efforts to enhance the appearance of the property so that tenants approve of it. At the same time, it requires you to not overdo with the polishing because tenants are less likely to care about the maintenance of the property than buyers.
If this is something you find difficult to do, there are always professional services out there who are in sync with the pulse of the real-estate market and know exactly what to do to prep your house for rental. Compare your home to other comparable rentals in the area to see if your finishes and condition are better or worse.
3. Fumigation and pest control
There is nothing worse than for a tenant to come to a house full of bugs. Knowing fully well that they don’t own the place and will have to move out sooner or later.
This feeling of lack of ownership is always in your tenant’s mind, and so it is your duty to make sure that they feel at home throughout the time of their agreement. Pests are not just annoying bugs that damage furniture; they can cause health problems as well.
Many people are allergic to insects and may even face serious health risks if they are not diagnosed and treated in time. Before you rent out your house, you need to either get rid of pests via fumigation and pest control.
Once the tenants move in, caring for the home will be their responsibility.
4. Heating and wiring fixes
This is an essential point that needs to be taken care of because of its multi-dimensional nature.
The first, and most important issue regarding this is the safety concern. Faulty or old wiring and heating systems can be dangerous to the tenants. There is no way you should even think of showing any negligence in this regard. Here are common problems and solutions for electrical.
Another issue with this point of renting out your house is that your tenants wouldn’t want to pay for anything more than they use. Have a professional come electrician conduct an inspection to check for any safety issues or causes of wasted electricity. Renters will not be happy if their energy bill is sky high or they’re stuck without heat or air conditioning when they need it most.
5. Evaluate your asking rate
Once you have followed the fixes and procedures listed above, you will be ready for putting out your house on rent. Once you reach this stage, you will have an asking price in mind that you would deem to be reasonable for your market.
A few things to keep in mind in this regard are:
- the time of the year in which you are renting out your house
- amenities or perks that come with your property (gym access, covered parking, utilities, etc.)
- comparing your price to other houses in the area or similar houses in the entire city/state. Burbz sells Rental Estimates that provide in-depth information for vacancy rates and average rents for the area. Learn more here.
6. Establish your management process
You are capable of self-managing your rental property if you are set up with the proper tools. Or, consider hiring limited help with management that fits your budget. Burbz offers a landlord-friendly platform for Co-Management. Co-Management is incentive-based property management that allows landlords to pick-and-choose which services you need. Learn more about Co-Management.
Today, landlords benefit from the optimization of software that helps them manage their rentals and retain more of their profits rather than hiring a property manager.
Primary tasks you must be willing to perform or coordinate:
- Collecting rent. Options vary from bank-to-bank payments like Zelle, popular money apps like PayPal and Venmo, or landlord software that includes free rent collection such as Burbz.
- Leasing the unit. You do not need a realtor or property manager to list your own rentals, those professionals simply give you access to list on MLS. However there is a cost typically associated with MLS. Free rental listing sites, such as Zillow, are popular among renters and simple to list your property. You will need to respond to emails and calls, then coordinate showings but handling this process yourself can significantly help maximize your profits.
- Background checks on applicants. After you received applications for the rental, running a background check and credit report can help minimize the risk of renting to a bad tenant. Luckily Burbz offers free background reports to landlords.
- Maintenance. Whether you are in town or out, you can coordinate the maintenance of your property. This allows you the flexibility to DIY or hire out local vendors when you need.
Do you need help self-managing?
We recommend landlords who are willing to sacrifice time to self-manage their rental property. Self-managing will maximize your profits and help create wealth. Burbz is excited to offer features that will benefit your process as a landlord.
Go to www.theburbz.com and register as a landlord for your FREE account.