The transition from being a homeowner to a landlord may seem complicated but it doesn’t have to be. Whether you are moving out to another house or just want to rent out your home, the overall process can be quite simple.
While a lot of people may love to own multiple homes, during this harsh economy, maintaining just one property can be a stressful task. In order to better determine the choice of renting out your home, ask yourself a couple of questions:
- Is the home I want to possibly rent out worth owning?
- While maintaining my normal job, will I be able to maintain the house for my tenants?
- Am I comfortable renting out my own home to strangers?
The ultimate answer to all these questions largely depends on the home itself such as the condition, safety, location, and the cost of mortgage. If these are all tricky or uncomfortable subjects, you should seriously consider selling the home rather than renting it out because if you think about it, renting out your own home is much like a business.
Along with personal obligations, your specific responsibilities as a Home For Rent By Owner landlord include:
- Safety: Keeping a well maintained home where your tenants can be safe is one of the most important responsibilities of the tenant. Several responsibilities such as proper wiring, safe entries, functioning appliances, and proper plumbing also fall under this category of safety.
- Advertisement: It is the sole responsibility of the landlord to advertise the home properly to future and potential renters. By advertising the home in a professional and marketable manner, not only are you informing potential renters of your home, you are basically “pitching” to your clients why your home has greater things to offer than other potential rentable homes in the market.
If you can’t imagine yourself taking care of these responsibilities, your best option may be to pay a professional property management/rental service to take care of these roles. However, if you are out of town or not living close to your home for rent, you must understand that you as a landlord must be on site to manage the home.
Estimating Your Rent as Home For Rent By Owner
In this crucial step of estimating a rent price, research is one of the key components to generating a competitive yet reasonable rent price. One of the best ways to research and generate a rent price is to start by looking at similar units and their prices. This can be achieved by comparing and analyzing the prices on online classified sites, newspapers, property management agencies, and various other resources.
Home For Rent By Owner Rent Vs. Costs
Even when plans don’t work out well and you don’t see an immediate profit from your home rental, there are still various reasons for keeping it up. Some of the good reasons have to do with sudden rises in property values, tax depreciations, avoiding losses for selling too early, and adding value to your home.
Finally, one of the key things to consider when renting out your own home is to screen your tenants. Whether it is through proof of employment, criminal records, or the most popular ways of screening which is credit checks, all of these components can give you reassurance that the person renting your home is indeed a model citizen. However, we highly advise that you don’t judge a tenant based on race, sex, religion, or any other personal preferences but getting a good feel of how the person is with making rent on time and how they handle respecting other neighbors can be a crucial decision on renting out your home.