If you have an extra property that you aren’t using, the smart thing to do is to rent it out and make some passive income from it. This has grown in popularity in recent years since it can be a great way to make money while still keeping the property in your possession.
That being said, it’s a bit more complicated than it sounds, and if this is your first time renting out a property, you may feel overwhelmed by what to do and where to start. Hopefully, this post can help, as it will be guiding you through four steps that you should take when you rent out your property.
Consider hiring a property manager
There’s a lot that goes into managing a rental property, and if you have a full-time job, your property may never reach its full potential because you won’t be able to dedicate as much time to managing it. Of course, there is also the fact that you may not know exactly how to best manage your property or how to deal with an emergency.
This is why you should consider using services like property rental management in Etobicoke to assist you, especially if you’re still inexperienced with managing rental properties. A property manager can help you with tenant screening, maintenance and repairs, rent collection, and more.
Make sure the property is up to code
Before you start renting out the property, you need to make sure that it is up to code and meets all of the necessary health and safety requirements. This means making sure that the property is clean and up to date, and that it has all the necessary safety features, such as fire extinguishers, smoke detectors, and carbon monoxide detectors.
If you are not sure what is required or you want to be extra sure that everything is up to code, you can always hire a professional inspector to come take a look and make sure that everything is in order.
Renovate the property
Renovating your property before you have tenants move in is the smart thing to do, because if you don’t, you may get calls from your tenants every day complaining about a new issue. So, it’s better to get everything done at once.
Renovating the property is also a smart move because certain renovations will improve the property’s value, which means that you can ask a higher price for it when you rent it out. Have a look at some home renovations that increase value to see which ones fit your budget. This could be anything from replacing old appliances to painting the walls.
Advertise the property
Once you’ve taken care of all the paperwork, you can start advertising the property to potential tenants. You can use online rental platforms, or you can use more traditional methods such as newspaper ads or flyers.
No matter what method you choose, make sure to include all the necessary information, such as the address, rent amount, and any other important details. This is an essential aspect, especially as there are many people who are looking for rental properties.
Get good tenants
There are so many reasons why you need to get good tenants for your rental property. The first is that it will make your life easier, which is again even more important when it’s your first time renting out a property.
The second is that good tenants will keep your property in good condition and also pay their rent on time, which will help your financial situation. There’s no way of ever guaranteeing that you will find good tenants, but you can learn how to make it easier for you.
Set up the right systems
Making sure you have the right systems in place is very important when it comes to renting out a property. For example, you should have a system in place to collect rent, a system to track tenant applications, and a system to handle maintenance requests.
Having systems in place will make your job much easier, as it will help you manage your rental property more efficiently. If you don’t know how to set up these systems, you should consider hiring a property management service that can help.
Set up a contract
Finally, you need to make sure to have a legally binding contract that lists the duties of both you and the tenant and also protects both parties. This is important for both of you, as it will help prevent any misunderstandings that could arise in the future.
You can try to set up your own contract, but it’s always a good idea to have a lawyer set one up for you or, at the very least, look over the one that you have set up. There are certain requirements that lease agreements need to have, so your contract should comply with these. If you do end up writing your own contract, be sure to follow these steps when setting it up. You should try to be very familiar with the contract so that you can ensure that you are fulfilling all your responsibilities.
To sum up
Renting out a property isn’t something to be taken lightly, and there is a lot of work that goes into it. It’s important to make sure that you take all the necessary steps to ensure that everything is done correctly and legally. Hopefully, this post will help make the process a bit easier for you.