How to Rent a House – A Quick Guide to Ensure Success and Prevent Problems
Renting out your house can be a lucrative business opportunity. But you must know how to rent a house like a pro, or you’ll run into unnecessary dilemmas.
Our helpful guide will make it easy and ensure you make the profit you’re hoping for. And if you’re the person renting from others, we have tips for you too.
When you know how to rent a house successfully, it could be your ticket to financial freedom. Use that additional income stream to pay your mortgage or finance other projects.
For property owners who plan on renting out an entire house or only certain rooms, it can be a wise way to make the most of this asset you own.But do approach this project with enough forethought!
Renting out any space comes with many risks and potential problems, whether you look for short- or long-term renters. How you plan and prepare your mindset will determine how beneficial—and profitable—it will become. We highlight the most important aspects to consider, to make you a wiser landlord.
When you’re new at being a landlord or you have rooms to sublet to roommates, use these tips on how to rent a house to your benefit.
Be Realistic About this Venture
Firstly, don’t underestimate what renting a house can require of you.
Are you planning on sharing the space with renters? Then be prepared for the realities of losing your privacy. Perhaps you don’t like being around other people as much as you expected you would. Is the new income stream worth sacrificing your privacy and current living arrangements?
If you’re renting out an entire house to others, also educate yourself about what being a landlord will entail. It may take a lot more time than you thought. Also, you need to ensure your asset doesn’t get damaged by the occupants. So, you can’t skip property inspection day (see below)!
The other tips on our list will enlighten you on what to prepare for practically.
Important Things to Plan for
Before you get your first renter, you need plans in place for what it takes to manage a rental property. The following are the most vital:
- Don’t risk spending your renters’ security deposits. They expect it back as soon as they move out and many countries have rules regarding the management of those funds. Opening a separate account for this money is a smart idea.
- Make sure you’re covered appropriately in your insurance policy, such as getting assistance in the case of property damage and having liability cover and even loss of rental income cover.
- You need time in your schedule to do inspections. Apart from on moving in and moving out day, plan for drive-by inspections to ensure tenants are looking after the property. Just remember to do this within the guidelines that protect renters’ rights.
- Cut extra keys or decide if a more modern access system is worth the investment. Especially with short term house rentals, using access codes or apps to allow entry is easier to manage than giving and getting keys from renters.
- More and more people look for pet friendly rental options. You may get more interest from renters if you allow this on your property.
- : Renting out a property becomes easier when you use professional service providers, such as accountants and attorneys to safeguard your business. You can also use a property manager if you can’t handle all the administration and logistics on your own, while professional cleaners help you maintain a hygienic environment. You can decide whether you want them for regular cleaning or an occasional deep cleaning.
Determine Rental Rates
Those who know how to rent a house will tell you that this isn’t a get-rich-quick plan. If you ask very high rates, nobody will be interested in renting your space. You need to find a market-related rental amount that covers all relevant expenses, but isn’t so high that your ideal renter—whether it’s a roommate or a tourist—can’t afford it.
A wise approach is to research other home rentals in the area, so you know what a competitive price range is. Only if you offer amenities that are unique to your property should you raise your rates above those in the neighbourhood.
Have Legalities Covered
All parties in the transaction have rights that protect them. Research landlord and tenant laws for your country or state, so you know your legal obligations towards renters, but also their responsibilities towards you. Knowing the law in terms of notice periods and anti-discrimination guidelines will prevent being sued. You’ll also know when you have the right to make a case against a tenant.
As a landlord, do ensure buildings codes are up to standard. Everything from electrical safety and gas to structural integrity and sanitation are your responsibility.
Get Everything in Writing
Before you meet with any potential tenants, set out relevant policies in writing. You also want your lease ready to sign and prepare forms for:
Make it easy to keep a paper trail of all relevant matters.
Do Your Rental Marketing Well
If you’re finally ready to accept your first long term renters or short-term occupants, get the word out and make sure your new business gets a lot of traction.
Get Curb Appeal
If people view your property online, the advertisement must have impressive images of the exterior. Also, if potential tenants view the site in person, you want their first impression to be a positive one. If the first view of the property disappoints, they’re bound to view the entire house in a bad light, no matter the quality and cleanliness inside. And the better they feel about the place, the more rent they will be willing to pay.
Therefore, spruce up the garden before you take those pics!
Market to the Right Crowd
You don’t want to settle on just any renter, so ideally you want a few to pick from.
Prepare Your Home for Viewing
When you have potential renters over to look at the house, make sure they can imagine good times in that space:
- roommate interview questions, paper and pens
Vet All Rental Applications
Even if you have a referral from a friend or colleague, always do in depth interviews with potential roommates. As mentioned above, a list of interview questions come in handy but also do credit checks and confirm their employment. You need to know they’re able to pay their rent.
Tips for Renters on Renting a House
If you’re reading this because you plan on renting space—a room or an entire house—from a new landlord, we’ve got you covered. Use this checklist to identify the best rental options that carry the least risk:
- Be the first to apply so you don’t miss out on a good deal. Requesting property agent alerts via email or mobile phone notifications can come in handy.
- Live where you can afford, so you don’t have more expenses than you can cover. You don’t want to be kicked out because you can’t pay the rent.
- Know your rights and the landlord’s, so you know when someone is taking advantage or treating you unfairly.
- Budget for security deposits and other possible expenses, so you’re ready when your ideal rental home becomes available.
- Make sure everything’s in writing, from contracts to complaints.
- Keep record of breakages and repair costs and discuss it with your landlord.
How Enzo Helps in the House Renting Industry
There are various benefits of making Enzo part of your plans when learning how to rent a house:
- Share house rules via the app
- Manage cleaning chores between housemates
- Communicate important dates via a calendar, such as inspection days
- Manage bill payments of multiple housemates
Because you use an app that’s accessible via iPhone or Android, you can keep all occupants up to date effortlessly. You can do this whether you live on the property yourself or rent an entire house out to others.
Stay connected and communicate about cleaning, maintenance and cost management with a few clicks on the Enzo app.