Things You Should Do Before Listing Your House for Rent

couple checking a home for rent

There are two options if you want to make a profit out of your home: either to sell or rent it out. There are a lot of house listings sites in Daybreak, Utah, where there are a lot of properties for rent or sale to choose from.

On the one hand, finding a buyer to purchase your house can be challenging and would definitely take some time. It also depends on the right timing as to when you are going to list your house for sale.

On the other hand, you can rent out your house instead, if you cannot find a potential buyer. In fact, a lot of homeowners choose to rent their property as a way to earn profit monthly. Some of them choose to list their homes on Airbnb as a vacation home for out-of-towners.

Should you sell or rent your house?

There are times wherein homeowners thought they would live in their houses for a long time, yet end up moving to another place for some reason. That leaves them with a choice whether to sell or rent out their houses. How can you decide between the two?

First of all, you should determine your home’s value. To have an idea, you can check out properties that are recently sold in real estate websites such as Trulia or Zillow. Another option is to hire an experienced real estate agent. He or she can conduct a market analysis and compare properties in terms of lot size, the number of rooms, and other amenities.

If you choose to rent out your property, the question is whether you have what it takes to be a landlord. Renting your property can give you a long-term monthly income that can help pay the mortgage and other household expenses. However, you should also consider your current expenses and determine whether the income out of a rental property can help cover those.

Tips on renting out your house

house key with a house keychain on top of a wooden table

As mentioned, renting your home out is a good option if you are not able to find a potential buyer. Renting can also provide profit in the long run, but make sure to follow these tips to make the most out of your rental property.

1. Decide how much you’ll charge for rent.

You can have an idea of the usual rent rate by checking online, rental signs within your neighborhood, or through newspapers. Don’t charge too high, or it can turn off potential tenants. Make sure it can be competitive enough in the market.

2. Look for a trustworthy tenant.

It can be hard to find a trustworthy tenant these days. The last thing you want is your tenant using your home for illegal activities. Make sure to know their details, including their Social Security number, criminal history, and credit background.

3. Create a lease contract.

Having a contract is important to protect you and your potential tenants. This should include details, including lease terms, rental deadlines, penalties, and other rules and regulations. Make sure that your property has insurance as well.

These are only some important tips to consider when you decide to rent out your property. The real estate industry can be competitive, but you should understand your options and choose what will suit your needs.