Renting out your house can be financially rewarding if you do it right. The potential monthly rental income you generate can help spruce up your bottom line and maximize your profits.
That said, renting out a property may become more trouble than it’s worth. This is especially true if you’re just starting. Here are 5 crucial skills that can help you successfully rent out your Denver home:
Renting out your house requires a responsible landlord. Landlords need to know and understand what exactly they’ll be getting into. You’ll need to stay on top of repairs and maintenance, collect rental income, and abide by relevant laws, among other things. Failure to honor these duties can hurt your bottom line.
For instance, if a landlord fails to stay on top of repairs and maintenance, the unit may become uninhabitable. As a consequence, the tenant may cancel the lease agreement or even do the repairs themselves and deduct the cost from the rent. Aside from the financial impact, such actions may also severely impact your property’s long-term value.
If you are too busy as a landlord or have a sizeable investment portfolio to look after, consider hiring a professional to manage the rental property on your behalf. They’ll be able to promptly respond to maintenance requests and ensure that tenants are satisfied.
Getting your property rent-ready means ensuring that the space is visually appealing and safe for occupation by tenants. Landlords can read their house by doing the following:
Although these improvements will cost a landlord some money, the overall return on investment can be significant. What’s more, finding a quality tenant may become easier and landlords may just be able to charge more rent if they invest in the right rental property upgrades.
Craft a rental ad and syndicate it as widely as possible in the local rental market. Begin by listing the most desirable features the property has. For instance, hardwood flooring, outdoor space for relaxation, washer and dryer, and proximity to public transport.
Besides listing such features, make sure that the property description section also contains other crucial details such as the property type, square footage, rent amount, location, and contact information.
Remember to take high-quality images of your house. Use clear, well-lit images of every room. Landlords may also go a notch higher and offer a virtual tour for better engagement.
Next, list the advert on as many relevant platforms as possible. A landlord can use online resources such as rental listing sites or social media. Other things landlords could do to spread the word further include:
The goal here is to ensure maximum exposure to potential tenants. Resultantly, this can ensure that landlords attract a large potential tenant pool, thereby increasing your chances of landing the ideal occupant.
Don’t take any chances when it comes to tenants. As a savvy landlord, you want to be as diligent as possible when screening tenants. If you post your well-crafting rental ad, you’ll start receiving inquiries and rental applications from interested tenants looking to rent your Denver property. The inquiries can come in the form of emails, texts, or phone calls depending on what you left as your contact information.
During this initial contact, try to learn as much as you can about the tenant. For instance, how much they earn, whether they have a pet, their credit rating, and when they would be looking to move out. This can save you valuable time by eliminating applicants who aren’t serious.
After the pre-screening process is over, move on to the next step – the property showing. This will help the potential tenants know whether or not the property meets their needs.
Next, have the remaining batch of interested tenants fill out a rental application form. This will require them to provide their personal and financial information. Finally, conduct a vigorous screening process. This usually includes checking every prospective tenant’s credit, background, rental history, and employment details.
A lease agreement can be established in either of three ways, through a written- or verbal agreement, or after the exchange of rent payments. If any of these occur, it’d then mean that you and the tenant have entered into a legally binding agreement. Consequently, you must abide by certain state and local laws, rules, and regulations. These landlord-tenant laws include the following:
The reasons for renting out a house can be many and varied. You can use a rental property as an opportunity to bolster your cash flow, build equity, and diversify your investment portfolio. And these 5 tips should help you achieve your goals!
If you have a question or would like to speak with an experienced property manager, please reach out to TJC Real Estate and Management. We can provide you with bespoke management solutions for your Greater Denver area property. Contact us now!
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