Have you ever owned a rental property? Have you thought about renting out the house that you currently live in? For various reasons, home owners choose to rent out their personal residences and this decision can be financially lucrative. Whether you’ve bought another home and your current home wont sell, you want extra cash flow, or you’re just not ready to get rid of the home you love, you should consider renting out your property. In today’s market, there is a high demand for single family homes and condo rentals in established communities.
Before renting your home, understand that not all renters are considered equal. Just because someone is paying $4000/month to live in your home, does not mean that they will treat it the same way you would. Landlords who rent out their personal residences need to prepare themselves and their home for a renter. Recently I ran into a situation where a client of mine was considering renting out his personally property. He referred to his property as “soft” and was concerned that the expensive stone floors he had throughout his home would get damaged. Before he rented out his property he got the stone polished and sealed which ultimately will protect them from wear and tear. Scenarios like this are very common when individuals rent out their personal home. Remember that making fixes that require a small financial investment to protect your property will pay off in the long run.
Preventive considerations to make before leasing your Personal Residence
- Repair or fix things that are not in perfect working condition (loose hinges, damaged window screens, leaky faucets)
- Add ‘pulls’ to cabinets (reduced wear & tear)
- Service HVAC equipment
- Replace any ‘priceless’ fixtures with adequate replacements (Chandeliers, Curtains)
- Hire a landscaper/pool service for the duration of lease
Moreover, I recommend hiring a Realtor to rent out your property rather than doing it yourself. A Realtor will give the property maximum exposure to potential renters. Realtors will also prepare a written contract, detailing all aspects and protective clauses pertaining to the property. By doing this, the landlord will have predetermined actions on how to handle various scenarios that may arise during the lease. Renting out your personal residence is not for everyone but those that do can expect to reap the benefits of reoccurring rental income.