If you’re thinking about renting out your house, or another house that you bought and fixed up, it’s not a bad idea. Maybe you want to move and are looking for houses for rent in Atlanta, GA, and want to rent out your old one. Being a landlord has its perks and rewards in the end. Plus, it lets you build a good relationship with tenants while bringing in extra income. If you make the decision to rent out your home, there are a few must-haves to do and think about before you take this step.
One thing to realize is that before you start making income from the tenant’s monthly rents, you’ll have to put in lots of hard work first. The process of becoming a landlord takes knowledge and planning but will be rewarding in the long run if you do it correctly.
Make a Finance Plan
The truth is that landlords usually only make a couple of hundred dollars from tenants in the first few months of renting. This is due to any repairs and maintenance that were done, insurance, property taxes, and mortgage payments if you have any. Renting out a home is definitely not a way to make money fast, even though it may seem like it when you charge tenants over $600 per month to rent.
Choose a Monthly Rent
How much will you decide to charge tenants? Will you charge an extra $100 per month for pets? You want to make sure you’re charging enough to make an income, but you’ll also have to attract outside renters, therefore making it too high will not be attractive. If it is on a higher scale, make sure the interior reflects that. Update the appliances, paint the walls, update carpet, flooring, etc. By adding in modern updates and making it look luxurious and welcoming, possible renters will be more inclined to sign a deal.
You don’t want your tenants to be calling you in the wee hours of the morning because the toilet broke or there’s a leak in the kitchen faucet. If you live close to the rental property you could be the property manager, but if you live a few hours away, you may want to hire someone that can be called to come and fix it. You also want to have a property management plan in place for any lawn care and snow removal or make those responsibilities up to the tenant.
Know the Landlord Tenant Law
Security deposits, property access, and ending lease periods are all documents that protect both the landlord and tenant. For example, being a landlord doesn’t mean you can walk into the apartment when the tenant is living there any time you please. You need to give the tenant notice, which time frames also vary by state.