Introductions
As a landlady with 400 units (primarily residential, a smattering of commercial), I get asked many questions about rent my house. For example, “Are you crazy?” and “How do you put up with tenants?” are popular queries. Lately, however, people seem to want my expertise (maybe something to do with the fact that I have been in business for 11 years and seem to know what I am doing finally). So, after the musings over my nuttiness for being in the industry, the question arises: “I’m thinking of renting out my house; how do I go about doing it?”
This is a big question, for sure. People rent out their homes for many reasons, but they usually do so because they cannot sell. In our region of the US, a little oil and gas boom is going on, so people are also hoping to cash in with a short-term rental with some people coming into the area. Renting can be a great option, especially now when more people are looking to rent than buy, but there are some things you should keep in mind:
1. How attached are you to this home?
Did you put in custom-made drapes that you would hate to see taken down and thrown away? Do you have wood baseboards that you lovingly scraped with dental tools to expose the beautiful grain of wood that you would hate to see painted over? Do you have a custom-planted garden you will cry over when tenants let it all go to seed? Remember, everyone lives differently. Finding the one person who appreciates your home as much as you will be difficult. You can do some things to minimize cleanliness/yard problems (housekeeping and lawn care are required, and you can make part of the monthly rent, for example).
However, you have to be able to allow others to live on your property differently than you do. Your tenant might not eat dinner in the dining room every night and prefer to eat on the couch in front of the television. Your tenant might think working on a motorcycle right in front of the house is perfectly fine. You have to be OK with people living differently at times, or this business is not for you.
2. Have you considered all the costs?
Check your city’s ordinances. Do you have to pay an inspection fee or register your rental? Make a realistic budget for maintenance. After all, things went wrong in the house when you lived there, too. Know the age of your hot water tank, furnace, AC and roof. These are all big-ticket items that you should budget for. You might want to re-think this landlord thing if you spend every cent you get and never have savings.
3. How good are your Boy or Girl Scout skills?
Are you prepared for emergencies?
First, everyone has a different idea of what constitutes an emergency. I try hard to train my tenants so they know that the only emergencies are no heat in the winter and water pouring through a ceiling. But you will get calls at inopportune moments, such as when the toilet is stopped or the AC breaks. You will have to figure out how you want to handle these things. I maintain that toilet problems are tenant-created, so they are tenant-responsibility. I’m sure my tenant wouldn’t want to come to my house after one of my children spent the evening regretting their Taco Bell dinner – I should not have to do the same. As for AC – we are not in a super-hot climate, so usually, it can wait until 8 am. If you hate being inconvenienced with calls/problems, this business might not be for you,
4. How thick is your skin?
Being a landlady is demanding work. People will repeatedly use the B word to their friends, especially when the rent is due, and they think it is too high (every month!). And they will take it out on you when the neighbors are annoying, the AC is broken, and the technician is waiting on a part, or they are locked out and don’t understand why you won’t get out of bed at 3 am to let them in (that’s why God created locksmiths). You can’t let it get to you. If it does, again, this business is not for you.
Should i rent or sell my house?
It’s more contextual to look at both options based on your current and future financial standing. Rent can be a great option as long as there is a favorable rental market and all the outgoings can be met with the rental incomes earned. This lets you keep the property while unlocking its appreciation ability. There can also be other situations where selling the property can be better for cashing out the equity. If you wish to do that or you want to evict your way of being a landlord, selling could be the best option. Evaluate these things in that order, and once you are done, re-evaluate them. Rate yourself based on your findings.
How to rent out my house?
The housing market is forever changing, and so will the rental and selling policies. Areas, where investors find house-buying opportunities and renting house policies can benefit from future growth potential, are as follows: Put in some preparation, but don’t go doing any extreme stuff like course cracks or refinancing on your own till it becomes prudent. It’s time to fix your rental price by looking at the competitive market. Rent out the property through well-known websites such as Zillow and Craigslist and do thorough background checks on the occupants. Make sure everyone fully understands the vetted essential points. Finally, if running the affairs of the property is too much for you, a practice management company may be employed.
An app asked if am renting or owning my house
When an app asks if you’re renting or owning your house, it typically personalizes the services or recommendations it offers. Homeowners might get assistance in maintenance of the home or assessing the different types of mortgages available to them, while potential renters would receive assistance in locating good rental properties or managing their leases. When the app makes suggestions, the provision of accurate information assists it in meeting its objectives in whatever area it was developed for, be it financial goals, property management, or lifestyle change suggestions. Responding appropriately helps the app adapt to your needs when making housing decisions.
Renting out a room in my house to a friend
Sub-leasing the rooms of assorted budget rent house where potential friends live to friends can be a wonderful idea helping in solving the inputs of the owner. Renting a conversation with a friend at your house may seem like a trivial thing, but it can lead to conflicts if two friends live together in such circumstances. However, it is necessary to draw the line in order to prevent any hypothetical future claims. Discussing the rent, the utilities which will be called over, and the common areas where both the parties will have to live is compulsory. Defining clear boundaries at the outset helps avoid friction between the two and your resting friendship, along with the financial benefit of sub-letting a room.
Reference :
Wendy Myers, AsktheLandlady (2014, May 5). Should I Rent My House?. https://askthelandlady.blogspot.com/2014/05/