Are you considering renting out your home? Renting out a house is a great way to bring in some extra income. But being a landlord definitely has its challenges.
From finding good tenants to developing a lease agreement to collecting rent each month, there’s a lot to consider. Understanding the ins and outs of renting out your home can make the process easier and less stressful.
Here’s a look at 7 tips for how to rent out a house in Delaware.
1. Treat Your Rental as a Business
Managing properties may not be your chosen profession. But if you have a home to rent out, it could be a great source of income for you.
It’s a business arrangement. To protect your investment, you have to take a professional approach with your tenants.
You want to make sure you’re complying with local, state, and federal laws. Following all regulations helps you maintain a good reputation and avoid unwanted legal problems.
Taking care to ensure you have good tenants, a solid lease agreement, and the right insurance can save you money and headaches down the road. It’s crucial to keep good records and document all expenses, rent payments, and late fees.
Although renting out your house has its benefits, you have to be aware of the legalities and potential pitfalls of dealing with tenants.
2. Prepare Your Rental for Tenants
Todays’s renters have plenty of options. So you want to make your home as appealing as possible without spending a ton of money. You want to make sure your rental is thoroughly clean and the appliances are in good working order.
Make sure the carpets and flooring are clean and the home is free of clutter. If you’re including furniture in your rental agreement, the furniture should be in good shape.
Curb appeal is a major factor for renters. And a well-manicured yard is a big draw.
Adding a fresh coat of paint and new carpet or flooring are relatively inexpensive ways to spruce up your home to attract tenants. Showing prospective tenants that you care about the property is always a plus.
3. Find Good Tenants
Your main objective is to find tenants who will pay their rent, keep up the property, and stick around. This isn’t always easy. There are various ways to find tenants, including online, local newspapers, and through friends and family.
Have tenants complete an application listing their name, salary, employer, previous landlords, and personal references. You should check their social security number and get a signed authorization for credit and background checks.
Using an online listing is a great way to attract tenants. They can see photos of each room and any outdoor space.
A good listing highlights the property features and your rental requirements. This can help you find serious tenants who will care for the property and pay their rent on time.
4. Set the Rent Price
Before you set your rent price, you need to research the market to understand the fair market rental price in your local area. Your price shouldn’t be based on what you think it should be. It should be a price that makes sense for your location.
If you want to find and retain good tenants, your rent price must be fair and comparable to other homes on the market. Keep in mind how all of this will affect you financially.
Weigh your fixed and estimated expenses for the property with the income you’ll receive. Determine if renting out your home is a sound financial decision for you.
5. Have an Attorney Review the Lease
Having a written rental agreement communicates your expectations to the tenant and helps protect you if a legal issue arises. It’s in your best interest to have a legal agreement signed by both parties.
Without a signed agreement, you could face difficulty proving the terms of the lease. Your rental agreement is subject to local, state, and federal laws.
That’s why it’s important to have an attorney review the lease agreement. This ensures everything is legal and you have covered all the bases.
No matter how confident you are in your tenant or lease agreement, disputes happen. It’s always a good idea to have an attorney review the terms of your lease agreement.
6. Purchase the Right Insurance
In addition to your homeowner’s insurance, it’s a good idea to purchase landlord insurance. This protects you from certain events that ordinary homeowner’s insurance does not.
Landlord insurance protects you against lawsuits, certain liabilities, and damages that could arise with your property. Consult a reputable insurance provider to ensure you’re purchasing the specific type of insurance you need.
Encourage your tenants to purchase renter’s insurance as well. This covers your tenants in case of loss of property or other potential issues.
Your rental property is a business asset. You want to have the most appropriate coverage to protect your property and your financial interests.
7. Consider Hiring a Property Manager
If you’re too busy to handle the responsibilities of managing properties, hiring a property manager may be a wise decision. Marketing your rental, dealing with tenant issues, and collecting rent can be overwhelming.
A property manager can help you manage one or multiple properties if needed. Having a property manager to handle the details is a good option if you live far away from your rental property or don’t want to commit to the day-to-day role of a landlord.
Putting your property in the hands of a property manager can offer peace of mind. Be sure to find a reputable management firm and ask for references before choosing the right management company.
Tips for Renting Out Your Home in Delaware
Renting out your home can be a rewarding process and provide extra income on an ongoing basis. But becoming a landlord is a big responsibility and is not without its fair share of headaches and risks.
Hiring a property manager is a great option for busy homeowners. If you don’t have the time or the desire to deal with the day-to-day responsibilities of your rental property, we can do it for you.
If you need property management in Delaware, contact us today to learn more.