5 Tips when renting out your property

There are many things as a property owner that you should know before renting out your property. Renting out your property has the financial benefits of getting extra money in your pocket on a regular basis. Yet, it can have dire financial consequences if you are not careful in protecting your investment.

To protect your investment, follow these 5 tips when renting out your property:

Tip 1: Make sure you have read and understand your mortgage bond insurance policy. Some insurance policies for homeowners state that you are not insured if your property is vacant for a certain time period; let’s say 30 days for example. Before you go on an extended vacation or decide to not rent your property for whatever reasons, read the fine print of your policy. Be very careful to ensure that there are no lapses in your homeowner’s insurance policy.

Tip 2: Employ a rental agent. Many estate agents that sell homes also work as property managers. They are professionals knowledgeable about the real estate market and can help you get top dollar for your property rental. They can take care of all the time-consuming tasks involved in renting a property. They can handle things like advertising the property, showing the property, screening applicants, collecting the deposit and monthly payments, and deal with all maintenance issues on the property. Find out if the rental agent has other “lower percentage” options to choose from. For a reduced rate, you may want only for them to find you the tenant and you can handle the rest of the property management issues.

Tip 3: If you decide to handle the rental of the property yourself, then it is suggested that you hire an attorney to assist you in the completion of the lease agreement. This can save you a lot of money in legal fees in the long run. Talk with the attorney and make sure the rules of the homeowners association (if any) are included in the lease agreement. The lease agreement is your back-up in case disputes arise between you and the tenant.

Tip 4: Always keep the maintenance of the property in good shape. Small maintenance issues can become big maintenance problems if they are not handled quickly and professionally. A landlord who responds to the maintenance concerns of a tenant will build good rapport with them and keep them happy in their current living arrangement. Ignoring the tenant when he calls to complain of a leaky roof is a sure way to damage your relationship with the tenant and it may cost you more money to fix in the long run. If you want to have the tenant take care of your property, then you need to show an interest in keeping it in good working order.

Tip 5: Learn to be flexible in the dealings with your tenant. Understand that a good tenant makes a landlord happy. Compromising in certain situations can lead to the tenant staying longer, be happier living in your property and paying the monthly rent on time.