How to Successfully Rent Your House: A Step-by-Step Guide

By Rent My Home

With each home you rent, the tenant-finding process will grow simpler. Here is a brief guide if you are starting your first property. This is a simplified framework; the real procedure is far more complex. Remember that taking the time to do things properly will provide long-term benefits.

Create A Liveable Environment


Once you acquire the home, you need to upgrade and renovate it before renting it out. Sometimes, this is as simple as replacing the locks and repairing the drywall. In severe circumstances, you could have obtained a cost-plus-improvements mortgage before extensive upgrades, like roofing or foundation work. Typically, the task will fall somewhere in the middle. When it comes time to calculate the property's financials, it will be crucial to have a detailed record of all renovations and associated expenditures.

Assess The Financials


Once the property is physically ready for occupancy, run the figures to determine how much rent you must charge.


Start by finding the property's cap rate. How long would it take to recover your initial investment using different rent cost models? Next, consider local marketplaces as comparables. How much do comparable buildings rent? Consider identical rental postings and include many pricing points in your plans. Consider your mortgage payment, renovations, and fees for management agencies or ongoing upkeep.


When you have a figure, run it through cost models to ensure that it is consistent with your investment strategy.

Create Your Lease Contract


Before promoting your house to prospective tenants, ensure that you have a lease agreement. This is the code by which your renters will obey, and it will describe both your and their obligations. Include the fundamentals, including:


  • List of tenants

  • Location of the property

  • Lease contract duration

  • Rent payable

  • Total security deposit

  • Late charge description

  • The move-in report state

  • Facilities (pets, smoking, utilities, maintenance) 


It is prudent to have a lawyer evaluate your lease, particularly if you used a template. Maintain two copies of the lease, one for your records and one for the renter.



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Promote the Property


You want to attract renters with a positive rental history, the ability to pay rent, and respect for your property. To attract these individuals, you must promote them in the appropriate locations. You may post advertisements almost everywhere and get rental inquiries, but it does not guarantee that you will attract qualified applicants.


Post your ad on prominent listing websites such as Zillow and Kijiji. Use several images, a well-written description, and a comprehensive list of features. Remember that most consumers are searching for unique destinations based on pricing and location. Capturing their attention with your photographs can help you attract more prospects and a more diverse applicant pool.


Outside of online listings, it is always a good idea to post yard signs and display flyers on community bulletin boards. Your flier in a coffee shop may attract a tenant perusing the board, just as a yard sign may attract the notice of a passerby.

Assess Potential Tenants


After an influx of applications, you will want a metric for assessing them. Whoever cannot offer evidence of a job, a steady income, or a history of excellent tenancy is eliminated. Retrieve a complete background report and assess the following factors:


  • Income and employment history

  • Criminal history (including felonies)

  • Financial background (including bankruptcies)

  • Evidence of employment

  • Previous ejections


You are not necessarily seeking to qualify someone; rather, you are searching for red signals that might disqualify them. Be aware of someone with a criminal record or no past. Remember that you may always request a surety signature on the lease. However, it is still important to exclude applicants needing more background or resources to be responsible tenants.


For renters who pass the background check, you should question their present occupation and the number of individuals who will be residing at the property. Two to three times the monthly rent should be the minimum required income, and there should be no more than two individuals per bedroom.

Sign The Lease Contract


Finding the ideal renter might take some time, though it is well worth the effort. A dependable and trustworthy renter is the key to a good cash flow at your property. When you discover this individual, it is time to sign the lease.


Take the renter on a property tour and record anything out of the ordinary, including scuffs, scratches, appliance problems, and external concerns. This protects the renter from responsibility and provides a benchmark for future inspections. You must do the condition walk-through as part of this procedure. You will also need to collect the security deposit and schedule the move-in date before occupancy.


Use this opportunity to address any tenant inquiries before to move-in. It may assist in clarifying any ambiguity that may come from the leasing agreement.

Maintain Your Property


Now your renter is in place and paying rent! The last factor to consider is maintenance. Your property will need upkeep, and your renter will certainly have inquiries. Someone must care for these items. You may hire a property management firm or manage the property yourself. If you want to control the property yourself, be prepared to perform the role of an active landlord and closely watch the property's demands. Prepare to forego a portion of your revenues if you choose the property management path.

Conclusion


Onboarding a new tenant might be scary, but with each new tenant, it becomes simpler. Create effective methods for yourself which will be more manageable than you believe. If you’re still facing challenges, our experts at Rent My Home can help! Contact us for more information now!


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