When renting out your home for an entire season, there are some aspects you will need to think of before doing so. This list is to help protect you. If done the right way, you will be able to make a profit and avoid the headache of a bad renter.
Know About Costs
It is a good idea to research other rental properties in your area. It will help you understand if the home that you have for rent is worth renting. The market will determine the price of your rental.
For example, if you have your home is in an area where the properties rent for $1,000 per month, you will not be able to charge $2,000 unless your home is significantly larger or updated.
Know Your Tenants
It is a good idea to get to know your tenants. Having a good relationship with them will make the process a lot easier. If you have gotten to know your tenants, then they will be more inclined to follow the regulations that are set in the contract as well as rent from you again in the future.
Know the Laws
It is best to know the laws in your area, as well as federal laws. You will need to consult a public accountant to find the tax codes for the property. Do not make “handshake” deals. Make sure to always make repairs when they need to be done and have a contract signed.
Insure Your Property
Always have your property insured. It will protect your home and it will protect you from financial devastation should something happen to the home.
It is also a good idea to make sure that the renters have renters insurance. This can be put into a lease contract. It will protect you as well. If something should happen to the house, it will include the belongings of the tenants as well. Therefore, you could be held reliable for replacing them.
Ultimately you are responsible for the repairs on the home. Yes, you can charge a security deposit so that you can afford the materials in order to repair and clean the home once the renters are through with the property.
You can also make a request that the house be in the same condition as they began with and they can have the security deposit back.
Following these guidelines will help you keep on track when renting out a home. Make sure that you do not micromanage the home, but also be responsive when there are repairs to be done. This will protect you and your tenants.