Whether you have bought/ built a house, if you are planning to rent it, then there are many things that you as the landlord should know. Though there is not anything too complicated to it, nowadays you cannot simply hand your house over to strangers and trust them with it. It is a sure way of inviting unnecessary trouble. Hence, it is important that you (especially if you are doing this for the first time), are armed with all the tips you can use to help you along. It can be a great mode of income if done right.
Insurance
As the landlord, it is in your best interests to apply for insurance, also known as rental property insurance. Without this, you are definitely asking for trouble. This is one of the most critical things you should do before renting your house. Along with everything that is normally addressed in such a policy, a landlord’s insurance also covers you in the event of any major damages thanks to terrible tenants. And trust us when we say, it happens way more than you would think or like it to. What is more, in the event they want to take legal action against you, this will help with that as well.
Settle the Finances
This includes things like the bond or deposit, the weekly/ monthly rental, utility bill payments and of course the well-detested tax protocols. This last one may be a little complicated for you at this stage, so if for example you are renting out an entire building, you must double-check on your tax necessities. Different laws could apply to different situations, so you have to see which you fall into. It also helps you understand whether you can afford that carpet dry cleaning you wanted to get round to.
Get Legal Help
You never know what can go wrong with this sort of thing, and as such must enlist legal help to assist you. This will help both parties know there are no loopholes to be taken advantage of, and that the tenants too will know how they need to live on your property. Real estate lawyers can be invaluable in helping you draw up contracts, and typically include a bunch of clauses that both sides need to daily abide by. Which only makes sense because at the end of the day it is your house, and so you want to be sure that you are protected in every possible way.
Inspect Your Home
Though this sounds more like the type of thing you would do before buying a house, it actually works great for renters too. They can get a list of all defect and malfunctions beforehand, so you know what the tenants are responsible for. Plus, this is also great for safety purposes, as any shortcomings can be fixed, avoiding the chances of injury. Getting someone to give you a full report is mandatory with this sort of thing, and you can always give your tenants a copy of the same so everyone is on the same (pun intended), page.