There are homeowners who contemplate about renting out their homes because of the obvious benefits; extra income, financial source to pay off debts, to put a second or vacation home to good use or as a way to attract potential buyers if the possibility of selling the home is an option in the future.
Homeowners with homes that are situated near the beach, the city or any famous and touristy landmarks are fortunate to always have the opportunity to rent out their home be it seasonal, short term or depending on your agreement with the renter. If you are seriously considering renting out your home, there are some factors you have to consider before making this big decision.
Can You Handle The Responsibility?
Some homeowners are naïve to think that renting out their home is as easy as 1-2-3 and that it is a quick way to earn money. This is not the case. Renting out your home entails a few major responsibilities such as preparing your home to entice possible renters and making sure all the sections of your home are well-maintained. You should also be patient during the times when your renter would call you (even in the middle of the night) to complain about something or to inform you about something that needs repairing. Taking care of your home should extend to taking care of your renter and keeping them satisfied.
How To Advertise Your Property?
If you have family and friends who know someone that is looking for a property to rent, then you are in luck since a. you would not need to advertise your property and b. the need to run a background check on the possible tenant would be to a minimum since it is a referral. But, if you are not this fortunate, you have to make sure that your property is advertised and seen by the future tenants. Then you know if they would be able to afford your houses for rent.
If you are targeting the upper class, make sure that you include the features of your property that would appeal to them such as “a view of the city’s skyline” or “overlooking a cliff” or “with a rooftop garden” especially if you are marketing your property as a vacation home. But if you are aiming for the working class to rent out your home to those who moved because of their work, advertise your property with details such as “near the bus stop” or “few blocks to the market” or “walking distance to the metro”.
Should You Draft A Contract?
The answer is a resounding yes. Even if the tenant is a referral, or a friend, or a relative. This written agreement is for your security and even of the tenant. If everything is black and white, it would keep you and your tenant in check on what you have agreed upon at the beginning since the contract would address any potential and future misunderstandings.
Research about the experiences of those homeowners who have rented their homes in the past, especially those in the same area as your property. Weigh the pros and cons then you could decide whether it is all worth it.