Renting out your home? Consider these six steps
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These days, making a little extra money from multiple sources of income will go a long way in helping pay the bills but also comes with its own set of risks. For most homeowners, renting out space available on your property is a great idea. Sometimes, however, our tenants can end up costing us more than the money they are worth!
To avoid needless expenditures and headaches in the renting scene, follow our six tips for renting out your home for guaranteed ease of living.
1 - Screen your tenants.
You need to be cautious about the sort of people you are willing to let into your home. Don't allow anyone in before checking their credit history, employment references, affordability and references from previous landlords.
Nearly all background checks include a criminal history check, based on information supplied by the future tenant, including their Identity number. Criminal background checks will reveal felony and misdemeanour criminal convictions, any pending criminal cases, and any history of incarceration as an adult.
Neglecting these crucial elements can lead to serious issues along the road. People who play the game of not paying rent on time or have this habit of breaking things often have a history of doing this in the past. It is not too hard to learn these preliminary details and cut them loose before they have even discussed a deposit.
Consider using rental documents like an application form that requests this supporting information from potential tenants and have every agreement in writing before allowing them to sign on the dotted line.
2 - Get everything in writing.
As mentioned above, a lease agreement is vital to keeping track of your ongoing relationship and dealings with your tenant. A lease agreement stipulates the general rules of engagement such as complaints, repair problems, and what the tenant is allowed access to.
A lease agreement is a legally binding document once signed by both parties so be extremely sure that everything is correct and up to date. A lease needs to contain basic information regarding the property that includes the physical address, contact details of the landlord or lease agent, date of signature, how long the lease contract lasts, rate of rent, and information about any increase in running costs.
3 - Maintain the property.
Renting and leasing out property is a two-way street. Sure, we generally worry more about unsavoury tenants, but careless and lazy landlords can also be a problem. You are not going to keep hold of good tenants' if your place is in disrepair, so be sure that the property is maintained and kept spic and span.
Pay close attention to your tenants' needs and be as responsive as possible to ensure a good relationship with them. Remember, your tenant is ultimately your customer. If you want them to pay you every month, be sure that they are happy too!
4 - Handle deposits professionally.
The financial obligations and agreements between yourself and your tenant are the most important attributes of renting out property. Create a fair and easy system of setting, collecting, holding, and returning security deposits.
Take a look here for more legal details.
Be sure to inspect the property and keep track of the condition you left it in, to determine whether or not the deposit should be returned on termination of the lease. It is preferable to conduct your property inspection with the tenant present. This way you are both on the same page and your tenant is well aware of what is expected of them.
5 - Safety and Security
You should treat your tenants like you would treat all your investments by keeping them safe from criminal intrusions. If your property needs security measures in place, then take note of where your shortfalls are. Do you need lighting? Are there a few tree branches growing over the wall or fence to create an easy access point? Sometimes the only thing you need is decent security gates and proper access control.
Also, be sure that your tenant is aware of other hazards that may be present on the property. Be sure that your tenants are fully aware of what they are walking into. This is vital because should your tenant have any pre-existing conditions relating to health issues that could be aggravated by hazards, you could have a lawsuit on your hands.
6 - Choose your rental agents carefully
While you may be the owner of the property, sometimes you don't always have the time to see to all of your tenants' needs (You are only one person, after all!). A good rental agent will manage all of the administrative issues surrounding your property and will keep you up to date with all the comings and goings.
Homes of Distinction has a name for excellence in the residential property market. Our dedicated team of real estate agents are property professionals focused on delivering you the most personalised service while managing your rental affairs.
To contact us, follow the link: https://www.homesofdistinction.co.za/
To contact one of our Real Estate Agents, follow the link: https://www.homesofdistinction.co.za/agents/
To view our rentals, follow the link https://www.homesofdistinction.co.za/results/residential/to-let/
Author: LV Digital
