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8 Key Steps to Renting Out Your Home Long-Term
Perhaps you need to move out of your current home, but you’re hesitant to sell it. Maybe you’d like to be able to pass it down to your family in the future, or maybe you could even see yourself moving back to the same area one day. If you’d like to hold on to your property, you could rent it out long-term rather than selling it.
Renting out your home is easy with the support of a reputable property management company like Savior Property Management, LLC! Here’s how to get your property ready for the rental market, register your rental business as an LLC for the financial perks, and advertise your property so that you can find reliable tenants.
Tackle Essential Repairs
Before you put your home up for rent, you need to address any repairs or maintenance issues. Make sure to fix up any leaky faucets, HVAC issues, or broken appliances. While you may be able to handle some of these repairs as DIY projects, you may also need to budget for hiring contractors to remedy larger issues.
For example, if your water heater is in need of serious repairs, you’ll want to have a professional repair or replace it. A broken water heater poses an immediate safety risk because they are powered by either electricity or gas. A malfunctioning water heater can easily leak toxic chemicals or even start a house fire. If the problem isn’t addressed, the issue will only get worse as time goes on - the water minerals will react with the heater’s steel material, which corrodes the tanks and makes it impossible to mend the leak. In general, a water heater will function for about 10 to 15 years, so if you’ve had your current water heater for a decade or more, you may want to replace it.
Add Popular Features
Once you’ve invested in crucial repairs, you may want to add certain features to your property that lots of tenants are looking for today. Letting a property states that fitted appliances, home offices, and security features like CCTV are all popular amongst renters today. Adding these features to your rental can attract more tenants, giving you a wider pool to choose from.
Set Up an LLC
You’re almost ready to start advertising your rental and seeking out your very first tenants - but there’s an important administrative task you should take care of first. Registering your rental property business as an LLC can grant you extra flexibility and help you protect your personal assets if you run into financial trouble.
Paying for a lawyer to file on your behalf can get pricey, so you could handle the process on your own. Alternatively, you can save time and money by filing through an online formation service. Every state has its own filing requirements, so make sure to look up which documents you’ll need in advance.
Pricing Your Rental
Before you officially put your property up for rent, you need to decide on your monthly rental rate. Naturally, the rate you can reasonably ask for will depend on your community’s local rental market. It’s a good idea to research comparable properties in your neighborhood and find out how much the owners are asking for in terms of monthly rent. Fit Small Business states that typically, you can set a monthly rental rate that falls anywhere from 0.8% to 1.1.% of a property’s value. But at the end of the day, the best way to figure out an appropriate rent price is simply by looking at the rates for similar properties - otherwise, you risk charging too much or too little.
Marketing Your Property
How can you get the word out about your rental? Turn to social media! Chances are, most renters in your area already use social media in their daily lives, so it’s the perfect place to advertise your property.
You can market your property across more than one social media platform to maximize your reach. Facebook can be a particularly great platform for advertising rentals because you can target people in your specific area. Alternatively, when working with Savior, you’ll rest easy knowing that your property is getting listed on viable platforms such as Zillow, Apartments.com, Apartment List, and other great websites.
And don’t forget about traditional forms of advertising, including using business cards. leaves a lasting impression, is more visible than email, and offers potential customers and clients something tangible to remember you by. When you’re looking to make business cards, you can easily and quickly design a customized business card using pre-made templates that can have images of your rental, as well as your own text and fonts.
Advertise on Other Platforms
There are other ways to advertise your property, too. For instance, you can keep things simple and put up a “For Rent” sign outside of your property with a contact number. You can also put up flyers at local businesses. Finally, make sure to let your family and friends in the area know that you have a vacancy - someone you already know might be looking for a place to live, or they could pass along your contact info to a friend whose lease will be up soon.
Screen Your Tenants
You’re accepting tenant applications - but how can you be sure that the tenants you choose will take care of your property and pay their rent on time? Look out for red flags to avoid before offering your property to anyone. Be wary of tenants whose applications reveal an inconsistent employment history, past evictions, or a criminal history.
Consider Hiring a Property Manager
What if your plate is so full that you need help managing your rental? It might be time to start working with a property management company. A property manager can handle a wide range of tasks for you, from screening tenants to processing maintenance requests. This is especially helpful if you live far away from your property!
Becoming a landlord is not a decision to be taken lightly. If you’re interested in renting out your property for the long haul, you’ll need to make sure that you’re ready for the responsibility. With these tips, you’ll be able to carry out key repairs for your property, set up an LLC for your rental business, and advertise your property across social media.
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