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Renting your property to tenants is a great way to bring yourself some extra income. You can earn quite a bit of money that way. However, there are some things you need to know about home renting ventures. The following are some of the things you should know about renting your property out to other people. There will be some tips that you should follow, as well.
1 Perform an Inventory of Your Home
The first tip we have for you is to conduct an inventory of your home before you rent it. You'll need to know everything you have inside the home so that you will know if anything ever comes up missing. This inventory should also include checking every one of your rooms for damages and taking pictures of the condition of the home. This will be helpful to you if you ever have any disputes with future tenants for damages to the property.
2 Conduct Background Checks
All pending tenants should have a background check run on them. You'll need to know if these persons have a criminal history, outstanding warrants or any other legal problems. You can use a reliable company to run a tenant criminal background check for you. These companies offer excellent rates for business owners who order the checks in bulk. You might also want to have someone run a tenant history background check and a credit check. These reports will give you more information about the people who want to rent your home. You can decline any prospective tenant who doesn't make you feel comfortable.
3 Ensure That Your Rental Price Is Sufficient
The next tip involves making sure that the rent you charge your tenants is sufficient enough for you. You want to make sure that the price you charge the tenant is enough to help you pay your bills. It should be high enough to earn you profits if you're renting it as a business entity. However, you should also ensure that the price is competitive so that you have a good chance of getting the kind of tenants you desire. Research the trends in the current real estate industry to see how much other property owners are charging to rent their properties.
4 Ensure That Your Leases Are Detailed
The lease is the most important document in a rental agreement. It explains everything from the cost of the rent to the rules and regulations of maintaining the agreement. You need to spend a lot of time making sure that you state your business and your requirements. Make sure you mention all the rules you have about quiet time, subleasing, loud parties, modifications, using the property as a business and so forth. You'll be glad you took the time to do that because it will save you possible trouble in the future.
5 Consult With the Tenants
Always ensure that you schedule a consultation with all interested parties. A tenant and landlord relationship should be an amicable one. You need to feel comfortable with anyone you are considering renting your home to. Therefore, it will be wise for you to meet with prospective tenants and talk to them about their lifestyles, interests, activities and more. It's fair for you to want to get to know prospective renters before you allow them to rent your home. You won't be violating any laws if you keep the conversation respectful and don't discriminate based on a protected status.
6 Ask for a Security Deposit
Lastly, ask for a security deposit. Security deposits are there for the property owner's protection. They are meant to protect you if your tenant runs out on the lease. You'll have enough money to stay afloat until you can find another tenant. The security deposit can also cover damages the tenant doesn't take care of or cleaning costs that you have to absorb after the person leaves. Most property owners ask for a month and a half rent as a security deposit. You can choose a different amount if you like.
7 Rent Your Property Today
Now you have a firm grasp of the processes you should use to ensure that your rental process goes well. Use those tips to perform your most successful rental today.