The demand for rental properties is high. This makes it the perfect time to rent out your house.
If you plan to rent it out, you'll need to do it right. This is a process that involves more than listing your home for rent.
There are several mistakes you need to avoid to protect your investment. Read on to learn about five common mistakes you must avoid when renting out your house.
1. Failing to Screen Tenants
One of the biggest mistakes you can make is not screening tenants. Screening tenants is an essential step as you want to know who'll be moving into your house.
Conduct a thorough check of the tenant. Do a background check and review their credit history. You'll also want to verify their current place of employment and, if possible, get references.
You want to find tenants who'll pay their rent and not give you any issues. The last thing you need is to have nightmare tenants.
2. Not Doing a Move-In Inspection
As soon as the tenant is ready to move into a property, you should conduct an inspection. Document the condition of your property. Take the time to take photos and videos.
You should also conduct an inspection once the tenant moves out. If you find any damage, you may be able to withhold the security deposit.
3. Not Drafting a Comprehensive Lease Agreement
Having a detailed lease agreement is a must if you're going to rent out your house. Don't rely on handshakes or oral agreements, as these don't hold any value.
Your lease agreement should include details like the tenant's personal info and tenancy period. Make this clear to your tenants, especially if you're renting your home to travelers.
The lease agreement should also cover policies about pets, guests, and noises. Outline all the rules you want your tenant to follow as well as their responsibilities.
4. Not Getting Property Insurance
Failing to get property insurance for a vacation rental property is a major mistake. It's worth buying this type of insurance as it can help you avoid financial losses.
5. Ignoring Maintenance Requests and Avoiding Tenant Complaints
As a landlord, you have certain responsibilities. If your tenant requests maintenance, you shouldn't ignore it.
What if you don't have the time to respond to such requests? You should hire a vacation rental management company that handles maintenance requests.
Never avoid responding to tenant complaints. It's best to respond ASAP to keep your tenants happy. Keep in mind that this helps to promote a healthy landlord-tenant relationship.
Avoid These Five Mistakes When You Rent Out Your House
If you plan to rent out your house, you need to avoid these five mistakes. If you make any of these mistakes, you risk putting your investment in danger.
If you're a busy landlord, you may want to consider hiring a property management company. Contact us to learn more about our property management services.