If you’re looking to increase your passive income by renting out your first home, simply continue reading to discover a few handy tips which will make renting out your first property a breeze.
Tips on renting out your first home for the first time:
1. Carefully determine how much rent you should charge per week
One of the most important decisions which you’re likely to make as a first-time landlord is how much to charge your tenants. If you’re unsure take the area your property is located in and its size into account and be sure to check other listings in your area for a guide on how much you can charge your tenants per week.
2. Give your potential tenants application forms to fill out
In order to find out whether or not a potential tenant will be a good fit for your property, it’s a great idea to ask your potential tenants a series of important questions in an application form. As well as asking individuals for references from previous landlords you should also ask for their salary. As an individuals salary should give you a fair idea of whether they’ll be able to pay their rent on time.
As an example, if you plan on leasing out a spacious 3-4 bedroom home and a potential tenant only works part-time at a minimum wage job, they may have issues paying their rent on time.
3. Consider paying for background checks on a tenant before you agree to rent out your property to them
As the last thing you want to do is to rent out your first home to an individual or individuals who have a lengthy list of criminal convictions, it never hurts to pay for a background check on a potential tenant.
While in most cases your search will come up clean, it’s still well worth paying for a background check on your first tenant, so that you’ll have peace of mind when it comes to letting a stranger live in your first home.
4. Protect your rights as a landlord by creating a lease agreement
Your lease agreement should provide information such as the length of your lease, what penalty you’ll charge tenants if they don’t pay their rent on time and a list of repairs that you’re responsible and a list of repairs that your tenant will be responsible for.
You can also list rules for the occupation of your property. As an example, you can stipulate that your tenants can’t play loud music after midnight. As part of your rental agreement, you can also demand that your tenant come up with a security deposit of one month’s rent.
5. Never rent your first home to an individual who you don’t trust
Finally, never make the mistake of renting your first home to an individual or individuals that you don’t trust. As you have every right to be picky when it comes to renting out your first home to a complete stranger. It may also be advisable to check out Tenants insurance from HomeLet to ensure safety and to take any precautionary measures.
So if you’re looking to choose your very first tenant, it’s well worth using the tips listed above to select your first tenant.
