Renting your home is a great option if you want to keep the property while making a profit or as a way to pay the mortgage while you look for a buyer. While homes in the Natick area are selling fast, renting is still a very viable option.
Before you list your home for rent, here are a few things to keep in mind.
Things like not being able to find tenants, non-paying tenants and property damage are just a few of the risks that landlords have to deal with. Before you rent, decide if the benefits outweigh the risks for you.
Current Market Trends
A real estate agent that specializes in the Natick, MA real estate area can tell you about current market trends and how they will impact your ability to rent your home. Paying attention to market trends can help you choose the best time to rent.
Listing and Advertising
Listing and advertising your property takes time and talent. A great way to tackle this is to let your agent write a listing that attracts buyers and then advertise it to generate interest.
Landlord Responsibilities and Management Companies
Renting a property means you are responsible for collecting rent, making repairs, providing maintenance and keeping the property in excellent condition. If you aren’t able to do these things, or would rather not deal with them, let a management company take care of everything.
Landscaping and Property Maintenance
Keep in mind that you will also need to take care of the landscaping and property when you rent your home. If you want, you could ask your renters to take care of these things, as part of the rental agreement, or you could hire a landscaping company.
Rent vs. Operating and Maintenance Costs
Of course, if you want to make a profit the rent you charge needs to cover operating and maintenance costs with enough left over as earnings. Carefully calculate how much it will cost you to maintain the property and make sure you are charging the right price for rent.
Furnished or Unfurnished?
Renting your home furnished may appeal to more tenants, but it also puts you at a higher risk of property damage. This is a matter of preference, as both furnished and unfurnished properties attract renters.
Rental Insurance Premiums
Be sure to include the cost of rental insurance premiums as part of your operating costs. Find out what your premium will be before you list the property so you can find the right price for monthly rent.
Contract Terms and what they Mean
Work with a legal professional to create a contract that clearly outlines your rights and your tenants’ rights. Other things to include are information about security deposits, lease length and eviction processes. It’s very important that you fully understand the contract before you use it.
Local Rental Laws
Find out what local laws and regulations you will need to abide by as a landlord. Before you start renting your house, make sure you are able to fully comply with them.
Dispute Resolution Plans
Have a dispute resolution plan in place so if you encounter a problem with a tenant you will already know what to do. If you can, resolve issues yourself, but seek legal guidance when needed.
The Rental Application
Use a rental application to find out about potential tenants’ employment, rental history and credit and to perform a background check. This will help you find the best tenants.
There is a lot to think about before you rent your house, but when everything is in order this is a great option for many homeowners. You can find more tips for renting a property on the Christine Norcross & Partners website.
If you are interested in assistance buying or selling a home in the Natick real estate market, contact Christine Norcross at 781-929-4994.