If you’re moving out, upgrading, or relocating, then deciding what to do with your home can be a big decision. If you live in Redmond, you probably already know that your home is prime investment property, and because you already own it, you can make a great deal of money every month just by renting it out. Most importantly, you’ll also be able to move back into your home if you ever change your mind, which you won’t be able to do if you sell.
While there are pros and cons to renting your home instead of selling it, you’ve likely already come to the conclusion that renting for a set fee is much better than spending months finding a buyer, or giving up a lifetime investment for a flat fee. If you’re trying to figure out how to rent your home, these tips from Redmond property management professionals will help you get started.
Basic Marketing for Rental Homes
If you want to rent out your home, you will have to market it. This can be a hassle, mostly because a sign in your yard simply is not enough. Instead, you have to take photos, make the home look attractive, and then market it online in social media, and on sites like Zillow, Apartmets.com, and similar. There are hundreds of these, and you will have to create an account and list your home. You can also market in newspapers and local newspapers, on local social media sites, and by networking. Each method has its own associated costs and requirements.
Running Background Checks and Auditing Potential Tenants
Once you start getting interested calls and contacts, you have to start running background checks. Your tenant application form should include basic information including the following:
- Applicants job
- Applicants supervisor or boss
- Their income/proof of income
- Current address
- Landlord reference
- Personal references
- Government ID
- Next of Kin
- Number of apartments lived in in the previous 3 years (reasons for the moves) with contact references
- Benefits, special needs, disabilities
- Number of household members and their names and social security numbers
- How they heard about you
These questions allow you to run a background check, and audit the suitability of a tenant for the position. Most tenants can’t afford to spend more than 40% of their monthly income on rent and still be able to afford bills, insurance, and amenities or lifestyle.
Contracts and Legal Paperwork
You’ll have to write up a legally binding tenancy contract, and run it by a real estate attorney.
Make Arrangements for Maintenance and Repairs
Making arrangements for maintenance and repairs is essential if you’re managing property, unless you’ve stipulated that it is the tenant’s responsibility in the contract, in which case you will have to charge considerably less in rent. Talking with local maintenance companies is a good idea because, while they won’t be able to take calls for you, you can ensure that they will respond to calls and go out to make repairs.
As a landlord, you are responsible for paperwork, tenant management, maintenance, repairs, upgrades, collecting rent, issuing statements and records, filing taxes, keeping the building up to Redmond city standards, and responding to questions and emergencies in a timely manner. If you’ve supplied a furnished home, then you’re also responsible for maintaining and repairing the appliances or replacing them if something goes wrong.
Hiring Redmond Property Management
If you’re moving out of the area, don’t have the time to be on call for your tenant, or otherwise don’t know how to handle the many complexities of real estate management, hiring a professional team might be the best way to go. Redmond Property Management offers free consultations, marketing, paperwork, full management, client/tenant portals so that you can access data, see records and pay bills online, handles maintenance, and much more. Contact us today to find out more about our services.