If you’re looking for a new home or have already bought a new home, you’ve likely been thinking of selling your old house. While it’s only natural that you’d want to sell your previous home, you can also consider renting your home.
Putting your home for sale in the market can be costly, time-consuming, and even stressful at times. Plus, depending on the state you live in, your house may get stuck in listing purgatory for quite some time.
But renting out your home can create an additional income for you and your family. And on average, most people between the age of 25-35 still rent homes. There are about 52 million people in the United States waiting for the perfect rental property to come along. But before you lease your home, here are a few things that you should take care of.
So, let us get started!
#1 Determine your goals
The first thing is to decide what your goals are for your property. Do you want to rent out your house until the market swings back into your favor? Or do you want to keep the home as a long term investment? Remember that regardless of what’s your motivation, you’ll still be responsible for your home’s general upkeep.
Nearly 10 percent of the rent amount you get each year should go towards essential house maintenance. Renting your home for a short term is unlikely to be profitable. However, if you decide to rent your house for the long term, you’ll get many benefits, which will be much more beneficial for you.
#2 Conduct market research
Before determining the rent amount, you’d like to charge, get an appraisal done on your house. A full house appraisal conducted by a professional can tell you the rent prices of similar homes in your nearby areas and their market values.
Having this information can come handy if a potential tenant tries to negotiate your proposed rate down.
#3 Invest in capital improvements
Before going for home appraisal, make sure you invest in a few improvements to your home. From fixing the broken pipes to repainting the interior to installing new cabinets, there are endless small changes that you can do to your home that will attract the perfect tenants.
#4 Property management or no?
If you’re a busy man or a recent retiree, you may want to have a property manager on board. Though this will be an added cost, there are many benefits too. According to the website https://propalliance.com/park-city-rental-property-management/, a good property manager makes sure that the rent is paid on time. Additionally, they will also take care of any necessary repairs or changes and will make renting home a stress-free affair for you.
Renting out your home is a great way to create a passive income source. Additionally, it will also be an excellent long term investment. But make sure that you take care of the things mentioned above before renting your home.