Things to Know Before Turning Your Property Into a Rental

The poor real estate market has made it nearly impossible for many people to sell their homes. As a result, many people have decided to wait it out and, in the meantime, turn their homes into rentals. It may sound as easy as putting a “For Rent” sign in the yard; however, there are many things to consider and do before you take on any tenants.

The first thing that you want to do is share your ideas with a legal consultant. Tell them your plans and allow them to advise on you all of the important legal implications. It is important that you understand the landlord/tenant laws for your area as well as any potential zoning problems. A real estate attorney can even help you draft a lease agreement and application. If you are going to be living out of the area, you could even hire a company like Transglobe Property that specializes in the management of rental properties. You can visit their website at www.transglobe.com for more information on their services.

Once you have the legal side under control, you can begin to prepare the property. Make sure that everything — the house, the yard — is clean and ready to be presented to potential tenants. If you have anything of value that you don’t want damaged or stolen, remove it before you begin showing the house. With the house in order you can begin advertising the property in the newspaper and online .

Receiving those first applications can be very exciting; however, don’t get overly excited and think that you have to accept the first person that applies. It is important to do reference checks with their previous landlords as well as a credit check. Failure to do so could result in a damaging situation for both your property and your pocketbook.

Deciding to rent your home is a great option for many people who either can’t sell or want to make a little extra income. By going into the situation with an open mind and getting lots of advice, it can be an enjoyable situation for you and the tenant.