Deciding to not sell but rent your home is a curious situation. It makes a lot of sense for many. But how to rent your house is fraught with considerations in order to make sure it doesn’t create financial (or even legal) problems. So what are some of those considerations?
After years or providing professional property services management in Texas, we know renting your house can be a trying time, especially when you’re not experienced in doing such a thing. It’s a lot to manage. So we thought we would break it down into a beginner’s guide to address a lot of the ins and outs of the path you’re going down.
Here is what we will explore in this guide:
- Research, Research, Research – What does research on renting your house look like?
- Preparing Your House For Rent – There are many thing to do to prepare your house for renting.
- How To Set the Right Rent Price – How do you figure out just the right price when renting your house?
- How To Market Your Rental Property – There are many things that can be done to get the word out to find tenants.
- Screen Your Prospective Tenant – Make sure you do this carefully.
- Onboard Your New Tenant – Finally, make sure you check all the boxes in order to get them into their new house.
- Consider Property Management Services to Help You – Give us a call!
Research, Research, Research
So you want to be a landlord? First things first. Do your research. Get familiar with local, state, and federal regulations that govern landlord-tenant laws. This is a unique responsibility that you’re looking to take on. It is crucial that you understand what you can and cannot do before you get too far into the process.
For example, the Fair Housing Act outlines federal protections for tenants. But states and local governments also come into play, which often expand on these protections. Between accepting rental applications, screening processes, and lease agreements, there are a number of potential liabilities for landlords. Always make sure you are abiding by local, state, and federal laws.
Preparing Your House For Rent
Here is the next question you need to ask. Once you decide and are exploring how to rent your house, ask yourself: is your house actually ready to be rented? Yes, there are bound to be things you need to take care of before showing it to potential tenants. What are some of those things that you need to do?:
Clean Thoroughly – Make sure the entire house is clean. Consider every corner of the house, from top to bottom. This includes carpets, appliances, fixtures, windows, and more. If your home is large, or you don’t have the time, consider hiring a professional service to complete a deep cleaning.- Make Any Repairs Needed – Make sure you do a full test of everything in the house to make sure it is working properly. You might need to fix a leaky faucet, a damaged wall, or any number of other things that come up. Check to make sure smoke detectors and carbon monoxide detectors are in place and functioning.
- Consider Painting – Depending on when it was last done, a fresh coat of paint is a greta way to attract renters. You would be amazed how much of a difference it can make. In general, using neutral colors is a safer bet in order to appeal to a wide range of renters.
- Refresh and Maintain Landscaping – First impressions matter, so don’t forget your property’s curb appeal. The most obvious actions would be mowing the yard, trimming bushes, and generally just making sure the outside is clean and attractive.
- Stage the Home – If it is in your budget, you could think about staging the house with furniture and decor to help potential tenants visualize what the house will look like.
- Consider a Professional Inspection – Another thing you might consider is a professional inspection. This can identify any problems you might not have seen through your own walk through the house. It also helps prepare you for any rental licensing processes you will need to complete before welcoming tenants into the home.
How To Set the Right Rent Price
Setting the price for your rental is a tricky situation. As an investor you want to make sure you’re capitalizing on your investment, while at the same time, pricing it too high can prevent you from finding tenants.
Some find simple formulas such as the 1% rule helpful, which suggests charging 1% of the house’s value as the rent price. While it doesn’t hurt to think of that as a ballpark answer, there are a lot of considerations that will help you get closer to a better price. These include factors such as the cost of similar rental houses in the area, local rent control laws, and evaluating the the local market.
How To Market Your Rental Property
Now that you’re ready to put your house on the market, how are you going to market it? It is difficult to ultimately figure out how to rent your house if you can’t find renters to consider it. What strategies are there to find potential tenants? Let’s explore a few options.
Rental Listing Sites – From Rent.com to Realtor.com, there are a lot of options. This is how many people browse and find rentals nowadays, so it is a good place to start.
Word of Mouth – Don’t forget, many people discover rental properties by merely asking around. Make sure you consider letting people you know and using your own social media outlets to get the word out.
For Rent Signs – You can post FOR RENT signs in appropriate places. While there are more modern tactics such as websites, you never know when locals discover the place from a sign, especially if the house is in a high traffic area.
Screen Your Prospective Tenant
It is important that you take the extra step of screening potential tenants for rental properties and there are a number of reasons why you do this.
A screening is done to inquire about the tenant’s financial stability and discover details about their previous rental history to determine whether there is a pattern of damage to past rentals. In addition, screening for criminal history helps protect you, your rental, and the surrounding area.
That said, landlords must adhere to all legal compliance issues and comply with related fair housing laws or regulations. It’s critical for property owners to establish clear and consistent applicant qualifications and a transparent screening process to avoid potential discrimination claims.
Onboard Your New Tenant
After going through the entire process of how to rent your house, and thus finally finding and securing a tenant, it is also crucial to make sure you “onboard” them so that you are setting them and you up for long-term success. What does this mean?
This includes a number of things, such as:
- Explaining and signing the lease.
- Collecting payments and security deposits
- Share copies of any certificates that are required, such as electricity and gas safety certificates
- Schedule the move-in day
- Deliver the keys
- Conduct a move-in inspection with the tenant
- Leave contact information and possibly a welcome message or card
Consider Property Management Services to Help You
Why not call us! Professional property managers are well-versed in managing rental houses, including those in the Austin area. Wouldn’t it be great if so many of these things were taken care of for you? Give yourself a break! What’s more, Austin area property management services such as ours can guide you through this process and look out for all the little details you may not know about. Contact us today to protect your time, your legal standing, and your investments.