If you own a home that you can rent, it is a great way to earn additional income or an additional way to start saving money. Single-family rentals are booming in the United States and demand is continually increasing as more people choose to rent rather than own because it is more affordable and flexible. Renting your house is a great opportunity and it is something that you should consider if you can do it.
Here are five things to know if you are renting your home.
1. Start an emergency fund: One of the first things you should do if you are renting is to start some type of emergency fund. This will be huge in the future if you ever need major repairs or damage. This is also useful if you find yourself in a situation where your current tenant cannot cover the rent and you have to pay the mortgage. This will also help any prolonged vacancies in your home or the event of a disaster like basement flooding. An emergency fund is key to making sure you can handle the long-term rental.
2. How you will manage your property: This is entirely up to you, if you want to manage the property or if you have a friend, family member, or hire some outside person with whom the tenant can communicate 24/7 if some problem arises. until. These include regular repairs and maintenance even of a pipe that bursts in the middle of the night. It is important to establish the ground rules in advance and decide which route you will take.
3. What will your tenants keep? This goes along with number 2 on our list. Be sure to clearly mark what your tenant will be responsible for in the lease, such as lawn maintenance or simple repair work. It is entirely up to you, although the generally simple tasks like keeping the house clean should be left to the tenant, the rest is up to you.
4. How to find reliable tenants: This is important to make your life easier and to find a reliable person in your rental home. Post an ad on Facebook or Craigslist or find a family friend, which is usually the best case. Always be sure to run a background check, credit report, eviction report, income check, and rental history. There are many things you can and should look for, you want to make sure the person is trustworthy and someone you can trust to live in your home.
5. What your insurance policy covers: You should get some type of homeowner’s insurance policy that gives you adequate protection. The protection you get is similar to what you will have for a comprehensive home insurance policy, but it generally does not cover belongings inside the home. That’s where a good renters insurance policy comes in. Recommend to your new tenant that a renters insurance policy is the best way to protect them and protect your belongings when you can’t.
Renting your home can often seem like an uphill battle, but once you get the hang of the system and have a good tenant, it’s easy and a great way to earn a second income and save some money.