In today's real estate market, we know that our members are more difficult to sell their houses. They must also take action to self-learn the basics of property management.
Use these six tips to help protect your property before renting out your house.
1. Find a good tenant
You can find tenants through advertisements in local newspapers, either in print or online. The word is also spread through friends, relatives and colleagues.
Ask prospective tenants to fill out the application form and list their basic information: name, employer, salary, former landlord and referee. You also need their social security number and signature authorization to check credit reports and criminal records. If you hire an online agent to provide a background check, make sure it is recognized by a better business bureau.
Do your own background check:
2. Decide how much rent to collect
- Extract the credit report. As long as you follow the guidelines of the Fair Credit Reporting Act (FCRA), you can conduct your own research through a credit reporting agency (Equifax, Experian or TransUnion).
- Check the criminal record. Search for state and local records online or find an institution. The landlord website provides tips on screening guests.
- Check the certifier, contact the employer, and talk to the previous landlord.
Learn about rents by checking newspapers, online resources, or community rental signs. The level of rent must be realistic. The rent may be lower than your mortgage, but if you want to find a tenant, the rent must be comparable to the price on the market.
3. Use a lease to protect your rights
Dianne Coscarelli of the American Bar Association said: "There is a written lease so that both parties can understand their rights and obligations." Good leases are consistent with fair housing, rent, tenants and insurance laws in your area. Coscarelli said: "These laws are different in states, counties and cities, so it is safer to work with local lawyers." She warned against using blank leases on the Internet because they may not comply with specific domain laws.
The lease should specify the following:
- Lease term: If you sell, a one-month to one-month lease will provide more flexibility, and if you hold the property, the annual lease will provide more stability.
- Margin, usually for one month or more.
- Rent due date and late payment fee.
- Repair and who is responsible for what.
- Routine maintenance and maintenance duties, such as lawn care.
- List of tenants.
- Code of conduct, including noise levels, neighborhood behavior, and smoking.
- Pet policy and related deposits.
- Who pays the homeowners association membership fee.
- Association rules that tenants must follow.
If you plan to put it on the market when the house is rented, then you have to arrange the expulsion clause, such as not paying rent or damage property.
4. Protect your property with insurance
It is very important to protect your property with the right insurance policy. If you rent the property to the tenant instead of using it as your primary residence, you need a different policy. When you live in a house, your insurance is the owner's policy, including the structure of the house, damage and your property. As a landlord, you need to rent insurance, also known as fire insurance. If repairs are required, this policy covers your home structure, legal fees, medical expenses, and rental income losses. Since you are not responsible for the tenant's property, you should encourage the lessee to purchase lessee insurance.
5. Hire a management company
Mainly charge for two services: finding a tenant, including advertising and background checks, and managing the property. The cost of filling a house can range from 50% to 150% of a month's rent, depending on the area. Monthly management includes collecting rent, collecting late fees, processing repairs, and handling early vacancies and evictions.
6. Prepare for evacuation
You need a lawyer to evict a tenant. If tenants are not willing to leave, you can't move their private property and drive them out. You have to go to court. If they don't want to move, the sheriff needs to come out and move them away.
