The current housing market is below par. Renting is a much better option than trying to sell your house while the market is this low. Renting your house out is highly beneficial as it not only helps to cover mortgage but also brings you some extra income.
To begin with, to rent out your home as an owner, you have to let USAA know about the rental status. You should also equip yourself with some basic knowledge about property management to ensure that you follow the right practices and don’t end up making mistakes.
Statistics show that almost one out of five people choose homes directly off the internet, and look for houses rented out by owners as opposed to other sources for rentals. As an owner, you can go through the following tips before you start renting out your home:
- Always screen your tenant and pick the best one. Try to look for known tenants by spreading the word that you are renting out a home. Request all applicants to fill a small form that asks for the renter’s name, employer, and other personal and professional information. Before renting your house out, you should also get the renter’s Social Security Number as well as a signed authorization form to conduct a credit check. You check should include factors like credit reports, criminal history, and consulting references. If you’re confused about this process, you can get in touch with professional agencies to help you with the process for a small fee.
- Analyze the rental costs in your geographic location and determine the amount that you intend to charge. Getting a comparable rental rate will make you favorable among renters, especially for those who are looking exclusively for rentals by owners.
- Document a lease and protect your rights as an owner. This lease should cover all the legalities needed to protect and safeguard both the tenant and owner’s rights and obligations.
- Ensure to get insurance for your property before you rent it out. Rent by owner type of homes are usually a little too flexible on agreement and rules, but staying protected can help you secure your property against structural damages and other issues.
- It is best to take the help of a management company. Most tenants who are looking at houses for rent by owners are keen on getting their terms approved without any hassles. However, this could be problematic for you and your property. Getting professional help ensures that you get the best tenants, and you don’t have to worry about managing your property during the rental period.