Renting a house is more about investing in properties, buildings. But there is a laundry list of items that one must check before entering a property which includes the physical condition of the house, associated costs, and relevant documents. Here are the things one needs to know before renting out a house for the first time.
1) Advertise the property
Majority of the tenants look for the rental property online. Hence, the most effective way to find a tenant is to advertise your property online. The best way to find tenants is to create an online rental listing. This includes telling tenants what your rental property has to offer. They will want to know the rental price, the address, number of bedrooms and bathrooms, amenities and nearby attractions. It’s even better to upload clear pictures of the place that would get the teenager interested as they would be able to easily visualise the property.
2) Right Rent Price
Research in your own way to know the fair market price of your area. Setting the correct price can be the main reason for attracting good tenants quickly. There are also many online platforms available to help you guide with the property rental rate.
3) Credit and Background Check
There’s no point in renting the property if you don’t receive the pay on time. Credit checks are among the best ways to learn if the tenant is financially sound or not. While reviewing the tenants report, look out for these points, mainly: undue payments, notable depth, bankruptcy. Look for a tenant who can pay in full each month, does not have a criminal history, and has a good rental background.
4) Rental Agreement
A rental agreement is a document that is signed between a landlord and a teenager to launch and govern a tenancy. It contains all the details about the two parties, so both of them have to follow the rules mentioned in the contract. Rental housing has become quite big nowadays. As per the Model Tenancy Act of the Union government (all States have to base their rent law on this Act ) the tenant must sign a rent agreement when entering into a rental agreement with the landlord. The legal form of the agreement with signs from both the parties has to be completed. Landlord gets to keep the original form and the tenant receives the duplicate. Tenant is not obliged to pay rent until they get a copy of the agreement.
5) Property Maintenance
Landlord and tenant are jointly responsible for the maintenance of the property, unless the agreement specifies different conditions. In case a tenant refuses to pay for the maintenance, it can be deducted from the security deposit by the landlord. And the same goes for the landlord. A tenant can get it deducted from their rental payment if the landlord refuses to pay for the maintenance.
6) Landlord’s Insurance
A landlord’s insurance provides you and your home with a protective shield against the risk of property damage, liability and monitory risk associated with tenants living on your property. The insurance policy also provides coverage from fire, theft, vandalisation of property, and other damages with malicious intent. The insurance policy would provide financial coverage if your home becomes uninhabitable due to poor maintenance by your tenant or any other unfortunate circumstances.
7) Proper Notice before entering the Property
Landlord needs to provide at least 24 hours notice if they want to enter the rented property. The notice must outline the reason in written for entering the property, be it repair or routine inspection. The tenant cannot deny a landlord to access the property when proper notice is given with a reasonable reason. However, the occupant may request to change the date or put in a clause in the agreement to limit the number of times the landlord can enter the property.
8) Collect Rent Payments Online
Nowadays, most of the landlords prefer online rent collection. Tenants are more willing to establish recurring payments as well. Collecting your rent through an online service should give you digital documentation, so you can skip the paperwork and also keep a track and proof of the payments made.
Many companies are offering online rent payment options, including property management services such as:
• Avail allows you to set up monthly rent and due dates for each tenant. You can even schedule late fees and security deposit payments.
• TurboTenant is software for landlords. It lets tenants pay rent online. Payments are deposited into the landlord’s bank account within 2 business days.
• ERentPayment allows for recurring and one-time rent payments. It also serves as a property management tool for landlords.
• Buildium boasts that their rent, bills and fee collection services can cut processing time by up to 70 percent.
• ClearNow is a service that collects rent and deposits it into your bank account
• RadPad can use RadPad to pay with a debit card, and landlords can get a check. Renters simply pay their rent with a debit or credit card and RadPad mails a check to their landlord.
Most platforms do not charge landlords. Instead, they pass the cost on to the tenants or you can choose to split it between you. Some platforms even furnish a tenant’s rent payment history to one or more of the three credit bureaus, which helps the tenant establish a credit history.
If you are looking for rental services, kindly contact ServiceMela for your need.