What you Should Know Before Renting out your Home

Renting out your Home

Real estate investments are a great way to diversify your portfolio. However, purchasing rental properties is beyond the budget for many people. What if there was a way to make money without the expense of a second property? Nowadays, you can make extra income by renting out your home. Some homeowners choose to rent out their entire home and downsize to simpler accommodations. Another option is renting out single rooms in your home and hosting guests through sites like Airbnb and Flipkey. Before listing your property, here are some important considerations about renting out your home.

Know the Market Demands

The first thing to consider is your home’s rental appeal. Just because you have the space doesn’t automatically mean people will want to pay for it. It’s important to know the real estate demands in your location to determine if renting out your home will be profitable in the long run. If the demand is low, it will be difficult to find renters.

The second consideration should be curb appeal. A little research will give you a better idea of what features are appealing to potential tenants. Compare your property to others in the neighborhood to see if your home would be an attractive option. You will need to complete all home repairs and should consider other small updates that can add value to your home. First impressions are lasting, so be sure that your home is memorable for all the right reasons.

The Finances of Renting out your Home

Your first financial question will be how much to charge your renters. Knowing the local real estate market will give you a clearer idea of rates. You can start by comparing your property to similar homes in your neighborhood. Be sure to set a price that will cover any additional expenses and keep you in the black each month.

The whole point of renting out your home is to bring in more income. However, any savvy investor will tell you that you must spend money to make money. Transforming your home into a rental property takes time, investment, and attention to detail. Home repairs and property management can be both pricey and unexpected. Before listing your property, assess how much work and the approximate costs of what needs to be done.

If you decide your home is ready for the real estate market, the next step is to get the word out. The advertising strategy depends on whether you are renting a single room, an entire property, or looking for long-term renters. Rental sites offer a wide range of options in accommodations and let you have a look at the competition in your area. Some  websites require a membership fee while others take a percentage after booking. Many homeowners choose to hire a professional property management company to handle the advertising and daily details. Choose the best option that keeps you under budget. The last thing you want is to drive yourself into debt before you begin.

The Legal Aspects of Renting your Home

Before you take the plunge into the real estate market, you should also consider the legal aspects of renting out your home. Each state has specific laws regulating rental properties and reporting of additional earned income. It’s wise to contact the City Housing Administration and a Certified Public Accountant to ensure you are complying with all state and federal laws.

You should also familiarize yourself with the Residential Tenancy Act so you understand both the property owner’s obligations and tenants’ rights. Draw up a rental agreement that outlines the rules, security deposits, rent collection, repairs, fines, terminations, and agreement to inspection. There are lease templates available online, but it’s smart to consult with a lawyer.

Notify your insurance company as well to update your policy and make sure the property is covered. Gaps in the coverage could leave you vulnerable in case of an accident. Knowledge and full compliance with the laws will keep you and your investments safe against severe fines or legal claims.

Taking the Leap

There are a lot of financial, legal and personal considerations when you decide to rent out your home. It is not something that should be taken lightly. Learn what it takes to manage an investment property and turn a profit. If your pro list outweighs the cons, then it’s time to get out there and start making money by renting out your home!

 

Renting out your Home

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What You Need To Know Before Selling Your Home

Selling your home requires some research and time.

Selling your home requires some research and time.

Selling your home can be both exciting and stressful. It’s typically a sign of a new adventure ahead, whether it is moving to a new area for a job or even downsizing to start a new milestone in your life.

With the real estate market flourishing right now, depending on where you live, you may have an easier time putting your house on the market now than you did in previous years. However, regardless of how well the market is doing, you still need to be aware of some do’s and don’ts of real estate. Here is what you need to know before selling your home:

Speak with a professional.

Even if you are selling your home on your own, hiring a real estate attorney will be helpful to have some legal eyes look over your contracts and paperwork. Catching any flaws before any sales are finalized can help to save you money in the future.

Put it online.

Online house listings make your home even more visible to the public along with providing quick updates regularly to browsers.

Hire an inspector.

You’ll save yourself so much time and energy by having a qualified individual come in and inspect your home. You should consider doing this before you even put your house on any listings or begin showing it so that you can strengthen your sale price by making any repairs or updates as needed.

Focus on curb appeal.

Take some time to improve the curb appeal of your home in order to attract more buyers. Invest in some simple landscaping and keep your lawn tidy (if applicable), raking leaves in the fall and clearing your sidewalks of snow in the winter. Think about what attracts you to a new property and apply this concept to your own home.

Price your home in line with both the area and market.

As tempting as it may be to price your home that extra 100 grand you feel it is worth, doing so may turn off potential buyers. You can attempt to go a little above market price, but talk with a trusted professional on what they would advise.  If you are in a location that has many individuals selling their home, you will have a hard time attracting a buyer if your price is out of range.

Have your paperwork ready.

Being as prepared as possible will help keep things flowing as best as possible when you are ready to put your house on the market. You’ll be able to answer any questions about taxes, the property and the like with ease by having any and all documents associated with the house on hand. Different questions may arise not only from the potential buyer but also from your listing agent or attorney. It may require filing a quit claim deed.

Get rid of the clutter.

Before you even start showing your house, clear out your closets, get rid of clutter and make it look even extra homey by adding in some house plants in various rooms. The key is to show space to those coming to consider buying your home. If they can not only imagine themselves living there but see how much space is available, you will be helping to boost the sales process along so that you can move on with your new adventure.

Hire your own real estate agent.

Although an added cost, having your own agent is a great way to obtain the price negotiations that are favorable to you. Agents representing buyers have more of a loyalty to their client instead of helping you sell your home, so they will be trying to get the best deal for their customer. Thus, if you have your own agent, you’ll be able to counteract professionally with rates that are close in alignment to your selling goals.


Selling your home can be intimidating (and nerve-wrecking), but by following the above tips and doing your research, you will gain a much better handle on the process. Just keep these in mind with each real estate sale.