During market downturns, many homeowners consider renting their homes to others. Some want additional income to pay bills or to save, and others want to wait until the economy picks up again. There are many reasons to rent out a home, but sometimes, it can be troublesome. Below are five steps to help new landlords get off to a good start.
Understand and Accept Responsibility
The first step is for the homeowner to decide whether they can handle the rigors of being a landlord. Rental Homes in Ames have numerous benefits such as tax breaks and extra income, but it can add more responsibility into an already hectic life. Landlords must handle repairs, collect rent, pay more for home insurance and encourage tenants to practice good housekeeping.
Get the Home Ready
In a downtrodden real estate market, homeowners can’t rent their homes as-is. Tenants are often more choosy during these times because there are more homes available, and expectations are higher. Get ready for renters by cleaning the home and ensuring that appliances are in good repair. Once that’s done, make a list of the house’s good points. Post an ad in the newspaper and consider hiring Furman Realty to market the property even more.
Hire a Pro
Renting out a home may seem simple, but it is important to consult attorneys, real estate agents and other pros to ensure that the landlord is following property and tax laws. Income from Rental Homes in Ames must be claimed on tax returns, and only certain expenses are deductible.
Set the Right Price
Set the rental rate by determining the average price of rentals in the area. Tenants are looking for deals, and a competitively-priced rent can make it easier to highlight the home’s most valuable aspects.
Carefully Screen Tenants
As soon as the property is ready for showing, start looking for tenants and choose carefully. The tenant should pay rent on time and keep the house in good shape. In roommate situations, the landlord should learn the other person’s habits to avoid unpleasant surprises.
Becoming a landlord during an economic downturn can be beneficial for the renter and the landlord, but only if the homeowner addresses potential issues and avoids the downsides of renting out the home. After all, the home still belongs to the homeowner, and it’s their responsibility to ensure that it’s ready to rent.
