In the United States, 77% of people prefer to rent instead of buying a home. If you're a landlord, leasing out your property to a tenant can be rewarding.
If you're renting out a property for the first time, however, it can be easy to fall into traps and make some frustrating mistakes. You should know what the best practices are for renting to ensure that you can find great rental tenants and have a great relationship with them.
Here are the top dos and don'ts of rental leasing.
Do Perform a Background Check
One of the things that you should definitely do when renting out your property is to perform a background check. Always do this on any tenant you're considering.
A background check will allow you to get a better idea of a tenant's ability to pay on time. It can also help ensure the safety of neighbors.
Do Create a Strong Lease Agreement
Also, think carefully about the lease agreement that you create. Create a lease that has been thought through thoroughly and that clearly outlines all of the necessary requirements in your relationship with tenants.
Be sure to get a lawyer to help you create a lease. This will help you avoid making mistakes.
Do Consider Hiring a Property Manager
You should also consider hiring a property manager when renting out your property. Especially if you're a first-time landlord, it can be tough to keep up with all of the responsibilities that come with leasing property.
A property manager can help you screen tenants and communicate with them. They can also help handle any maintenance issues that come up.
Don't Neglect Maintenance
As a property owner, make sure that you don't ignore the need for maintenance. Neglecting maintenance is one of the most common tenant complaints.
Maintaining your property when needed will help to keep your tenants happy. It will also help ensure that your property stays in good shape and is ready for new tenants if your current tenants decide to move out.
Don't Ignore the Law
When leasing out a rental property, understand what's legally required of you as a landlord. When screening tenants, make sure that you understand the Fair Housing Act and don't discriminate against anyone.
Also, be sure to follow all legal requirements when managing the property. Follow all relevant laws when collecting deposits and rent from tenants.
Don't Choose the Wrong Price
When renting out your property for the first time, make sure that you have a good idea of how much you should be renting it for. Renting for a high price may make it hard to find tenants and fill vacancies. On the other hand, renting for a low price may make it difficult to cover your costs.
Consider researching the other homes in your neighborhood that are being rented out. This can help you get a better idea of how much you should be renting your property for.
Making the Most of Rental Leasing
As a property owner, be sure that you follow all of the best practices for rental leasing. Screen tenants well, follow all relevant leasing laws, and keep your tenants happy as time goes by.
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