Renting out your apartment can be lucrative. However, prior to thinking about the cash that can be possibly generated, think first of various considerations to get your property rental ready. Preparing your apartment to be a rental property is not just about posting a ‘for rent’ sign.
Below is a systematic process of getting your property rental ready.
Step 1- Determine and Understand the Duties and Responsibilities Involved
Being a landlord is never an easy task. It involves various responsibilities including collecting rent, maintaining and/or repairing the property, and much more. If you think and feel these responsibilities are bit overwhelming and are difficult to handle, simply let go of the idea of having rental apartments.
Step 2 – Invite a House Inspector
This is a significant step even though you feel that your rental apartments are in good condition and everything is fine. Having the property inspected by house inspector can help reduce your insurance, and will serve as gauge to evaluate the property’s condition after the tenants decided to move out. Apart from looking for house inspector, consider having house appraisal. This can serve as a guide to know if renters have made property damage that needs costly repair.
Step 3 – Clean the property inside and outside
Ensure that the house’s counters and floors are well scrubbed, the carpets are thoroughly vacuumed, and the grounds are well maintained and clean. Also, make sure that the equipment/appliances are functioning properly. If the apartments for rent are the furnished type, ensure that all the housewares and furnishings are in good condition and clean.
Step 4 – Determine the rental price through inquiring about the rental rates of similar properties around your neighbourhood.
Ideally, the rental income every month should cover the overall monthly cost including the taxes, mortgage payment, property insurance, and municipal service and association fees. However, take note that the real estate market is the one that generally determine the amount of rental charge, hence be prepared to go for less than your deal price.
Step 5 – Draw up rental or lease agreements through using a legal firm or lawyer’s service.
Ensure that the lease includes or states the precise amounts that the renters owe, the due of payments, penalties on late payments, amount of security deposit needed to rent the house, length of rental term, tenants responsibilities and anything you wish to include.
Step 6 – Time to advertise the apartment for rent
You can use either traditional or online marketing strategies such as placing ads on bulletin boards in the community, in newspapers, or in social media websites just like the way Region Apartments did.
Step 7 – Assess possible renters carefully – Interview potential renters, call all their personal and work references, and run a background check.
This is to ensure that the house will be entrusted to qualified renters.
Now, be ready to welcome your new renters.