Are you mulling over the idea of renting your town house? That might be the best way to save a few hundred dollars to pay down bills or wait it out until the economy improves to sell your house. People have different set of motives to rent out their homes, most people are not aware of the trouble associated with it.
A lot of people would suggest you consider certain criteria before renting your home and avoid the common mistakes landlords make while renting their homes. It’s better to be well-informed about the know-hows of renting your home rather than regretting later when trouble arrives.
Here’s a list worth considering before giving our town house for rent:
- Scrutinize and prepare your home
Oftentimes, homes left empty for a long time might have some major problems which are often neglected and goes unnoticed. It’s suggested that you evaluate if the house has if there are any leaks, clogged gutters, leaky pipes or faucets, burnt-out light bulbs and electrical outlets. Make your town house a dream home for the tenants with little or no flaws before posting “for rent” sign.
- Screen your tenants carefully
Most people fail in this vital step of finding the right fit for their town house, it might be more of trouble rather than the extra income when you don’t choose a good tenant. You might try all means possible to find the right tenant for your town house by posting advertisements in local newspapers and online websites. Furthermore, you can ask your friends, coworkers, and relatives to spread the word.
It might be the best deal to look out for the potential tenant’s credit reports, previous landlords, and references. You’ll get a better idea of the potential tenant when you make sure that he or she has not defaulted in paying the rent to the previous landlord. Make sure you don’t miss out on checking if the potential tenants are free from any criminal records.
- Set a competitive price
It’s recommended that you have a word with the other property owners in your neighborhood to learn the art of being a landlord. You might also get the big picture of how much rent is charged in your locality and fix a fair rent for your tenants. Sometimes, the rent might be lesser than your mortgage payments, however, you should be realistic with rent levels and compare them with what’s in the market.
- Understand the rights of tenants and landlords
It’s suggested that you have a word with a property attorney to avoid losing thousands of dollars when you’re unsure of the tenants and landlords rights in each state. You’ll be in a better position to understand your rights and sign the right set of agreements with your tenants. Make sure that you abide by the local property rules and tax laws when you rent your town house.
The aforementioned guidelines will help you out avoid the common mistakes done by most landlords while renting their town house. It’s suggested that you do some research on how to be a better landlord and make life easy for you and your tenants.