Ready to rent? Renting for single-family homes is now seeing its biggest boost in 15 years.
If you’re thinking about renting your home then you may have some questions about how to get started. Renting a property is one of the best ways to generate income.
If you don’t rent your property wisely from the beginning then you may end up having a lot of trouble from property renting mistakes. Here are some things that you need to bear in mind before you rent any property.
1. Bad Lease Agreement
Your lease agreement is one of the most important things you will need to handle when you are considering renting a property. While you can have an oral lease agreement with someone it is always better to get it in writing.
What may seem like an amicable oral lease agreement, in the beginning, may turn sour. You want to ensure that you have a formal written lease agreement.
Check out the conditions for a lease agreement where you live. You will want to make sure that everything is legally allowed.
For example, if you want to stipulate that a renter cannot receive their security deposit back. This may be illegal in your state, you need to find out before including it in your lease.
2. Failure to Screen Tenants Well
One of the things that you need to pay close attention to is the screening of applicants. Before entering into any rental agreement with an applicant you should get their permission to get background information on them.
You should get reports about their criminal record, employment, and credit history. Make sure that you call and speak to any references they may give you.
You may also get written references as well. This is the only way to ensure that you are renting your home to someone responsible.
3. Lack of Insurance Coverage
Before you buy a property you may need a loan from a lender, you can find more information here. Make sure the amount you borrow can help to cover insurance costs as well.
Insurance coverage is something that you cannot afford to skimp on when you have homes to rent. It is a common mistake for many homeowners to assume that they are covered under homeowners insurance.
If you can get landlord insurance coverage then you should obtain a policy. This will protect you in case there are accidents or damages to the property.
Property Renting Mistakes
The types of property you are renting do not exclude you from doing due diligence when renting a property.
If you don’t you will make the common property renting mistakes that have been discussed here. You must do due diligence to ensure that you are protecting your interests.
You need to ensure that you rent your property to good tenants, get insurance coverage, and put a proper lease agreement in place. All of this will ensure that you have a pleasant experience as a landlord.
If you would like more tips, please check out the business articles on the website.