Renting out a house can sound like a quick and easy way to make money, but getting everything ready can be a long and complicated process. Here is a basic checklist of things you need to do in order to get to the end of the road.
Before you do anything else, decide which requirements you want future tenants to meet before they rent your house and what policies you want them to follow while they live there. Familiarize yourself with local and federal fair housing laws before finalizing this criteria so you do not accidentally violate it.
Make sure paperwork is in order.
There is a lot of paperwork that goes along with renting out your home for you and possible tenants, including:
- A list of the criteria they need to meet
- An application to rent your house
- An applicant questionnaire (see our list of ten questions to ask potential tenants for inspiration)
- A lease agreement
If you have not done so already, talk to an accountant about the potential tax implications of renting out your house. Ask them about what records you need to keep for filing taxes and handling depreciation of your property.
Once you have created templates for applications and lease agreements, run them by a real estate lawyer. They will make sure the applications and agreements are above board, and you are protected.
Whip your house into shape.
Make sure your house is in good condition before a tenant moves in. You will need to schedule a home inspection to comply with local housing laws and to locate maintenance issues. These inspections also give you third-party documentation in case issues with a tenant come up later.
As you decide what to do about issues from the inspection, consider which of these ten equity building home improvement suggestions you might implement as well.
This is just a basic checklist. If you have any more questions about this or other property management or home renovation topics, we would love to answer - contact us today!