Did you know that only 65% of people in the United States own a home?
The rest of the population lives in rentals or other forms of housing that they don’t have full ownership of.
If you are looking to make money on property, you should consider renting out to families who are searching for a place to live.
Continue reading to discover how to rent out a home so that you can make more money!
Take Care of the Details
The first step in learning how to rent out a home is to handle your paperwork first.
Getting a mortgage, insurance, and rental license will be crucial to putting up your place on a rental site. You will also want to use this time to look up state, federal, and local regulations that apply to renting a home.
Make sure that your insurance policy covers non-owner-occupied homes, this will be crucial for your rental. A rental license can be applied for online and doesn’t take long to receive confirmation.
Set Your Price
There are many factors that first-time renters should consider when deciding on a rent price.
Take a look at the market value of your property and compare it to other homes in your area. Many people use Zillow, Trulia, and other brokerage websites to determine a reasonable price for the area you are in and the size of the home.
The style, size, amenities, and condition of the home should all be factored in when setting your monthly price. People that are renting a property will need to know their expectations and monthly payment due dates.
Find Someone to Manage the Property
One of the best renting a home tips to follow is to find someone to manage the property.
If you do not live near the rental property, you can hire a landlord to oversee the home and keep up with maintenance. Some people choose to work with property management companies that can also manage the home.
Having someone to manage the property is necessary so that the renters have someone to contact if damage occurs to the property.
Come Up With a Rental Application Process
When renting a home you will want to do an extensive application process to find the best people.
Renting out to the first couple or family that comes your way can bring issues if you don’t know their history or finances. The application should include the renter’s payment histories, credit score, and background check.
Many people request that potential renters provide at least 3 references. They can help give you information about how clean and responsible they are.
Learn How to Rent Out a Home
Many people are interested in learning how to rent out a home to make extra money.
By utilizing this guide, you can turn pieces of property into income without having to do much work. Once you have all of the legalities taken care of, you can start searching for renters that will be good and reliable residents. Although some concerns arise with renting, you can prepare for the worst situations.
Be sure to check out our blog for more articles about the benefits of renting a home!