There are many reasons that you might suddenly think, I need to rent my house. Maybe you’re moving for a new job opportunity or you want to be closer to family. For many people in this situation, it’s their first time becoming a landlord.
There are legal implications, financial liabilities, and emotional concerns when you choose to rent your house. Navigating these challenges can be overwhelming, but there’s no need to worry. Evernest has helped thousands of landlords work through this process.
In this article, we will walk you through the steps necessary to rent your house successfully. From preparing your home to understanding your responsibilities as a landlord, we will cover all essential areas you need to know.
Get Your Home Rent-Ready
We recommend starting by moving all of your furniture and personal belongings out of your home. This step is crucial because it provides you with an objective view of what needs to be updated or repaired in the house. By clearing out the space, you not only allow potential tenants to envision their own belongings in the home, but you also create an environment that feels more spacious and inviting. Consider this an opportunity to assess the layout and functionality of each room, ensuring that it meets the expectations of modern renters.
Begin with minor tasks such as touching up paint and ensuring that all appliances are in working order. Don’t overlook the importance of functionality — the HVAC system should be operational, and there should be no clutter left behind. A clean and well-maintained home is more appealing to prospective tenants and often results in a quicker rental process. Additionally, consider enhancing curb appeal by tidying up the exterior, trimming hedges, and adding fresh flowers or plants. First impressions are vital, and a well-kept yard can significantly increase interest in your property.
Furthermore, think about the little details that can make a big difference. Replacing outdated light fixtures with modern, energy-efficient options not only brightens up the space but also appeals to eco-conscious renters. Installing new hardware on cabinets and doors can also provide a fresh look without breaking the bank. If your budget allows, consider staging the home with neutral decor to highlight its best features. This can help prospective tenants visualize how they might utilize the space, helping your property stand out in a competitive rental market.
Research Rental Rates in Your Market
To establish a competitive rental rate for your property, you’ll need to conduct comprehensive research on rental rates in your local market. Start by exploring online platforms like Facebook Marketplace, Craigslist, and Zillow, focusing on comparable properties.
When searching for properties, consider the following:
Number of bedrooms and bathrooms
Square footage
Location and neighborhood amenities
Additional features such as a garage or backyard
Being aware of the market rental rates can help you set a price that is attractive to potential tenants while ensuring that you achieve a positive cash flow from your property.
In addition to online resources, consider visiting local real estate offices or connecting with property management companies. These professionals often have valuable insights into the nuances of the market that may not be readily available online. They can provide information on trends such as seasonal fluctuations in rental demand, which can significantly impact pricing strategies. Furthermore, attending local real estate investment meetings can offer networking opportunities where you can gather anecdotal evidence and firsthand experiences from other landlords and investors.
Another useful approach is to analyze historical rental data for your area. Websites that track real estate trends can provide insights into how rental prices have evolved over time, helping you to identify patterns that may affect your pricing strategy. For instance, if you notice that rental prices have consistently increased over the past few years, it may be prudent to set your rates slightly higher to align with this trend while still remaining competitive. Conversely, if the market shows signs of saturation or declining demand, you may need to adjust your expectations accordingly to attract tenants.
List Your Property & Interview Potential Residents
Once you’ve prepared your home and researched rental rates, it’s time to create a listing for your property. Invest in high-quality photographs that showcase the best aspects of your home, and write an accurate and enticing description. Be sure to highlight key features while maintaining compliance with the Fair Housing Act. Consider including details about the neighborhood, such as proximity to schools, parks, and public transportation, as these factors can significantly influence a potential resident's decision. Additionally, think about incorporating virtual tours or video walkthroughs, as these can provide a more immersive experience for prospective tenants, allowing them to envision themselves living in the space.
When interviewing potential residents, adhere strictly to Fair Housing laws. Avoid making decisions based on demographic information, and instead focus on their financial qualifications and employment history. Establish a rigorous screening process and ensure that it’s applied uniformly to all applicants. This may include background checks, credit reports, and rental history verification. It's also beneficial to prepare a list of questions that will help you gauge the applicant's reliability and compatibility with your property, such as their expectations for maintenance, preferred lease terms, and how they plan to care for the property. By taking these steps, you not only protect yourself legally but also increase the likelihood of finding responsible and respectful tenants who will treat your property with care.
Create a Rock-Solid Lease Agreement
Another crucial step in the renting process is drafting a comprehensive lease agreement. This document will serve as a contract that outlines the terms and conditions of the rental arrangement, protecting both you and your tenant.
Consider including clauses regarding:
Rental insurance requirements
The security deposit
Pet policies, if applicable
Maintenance responsibilities
Utilizing reliable lease agreement templates can help ensure that your agreement covers all necessary aspects and complies with local regulations.
Be Prepared to Handle Day-To-Day Responsibilities OR Hire a Professional Property Management Company
After successfully placing a tenant in your home, your responsibilities as a landlord have only just begun. You will be tasked with addressing maintenance requests, conducting annual inspections, and collecting rent.
If you anticipate that these responsibilities may become overwhelming, consider partnering with a professional property management company, such as Evernest. They bring expertise and can handle the daily operations of your rental property on your behalf, allowing you to enjoy a more passive income from your investment.
Conclusion
Renting out your home in Nashville can be a rewarding venture if approached methodically. From preparing your home for rent to selecting the right tenants and managing post-lease responsibilities, diligent planning is key to your success as a landlord.
Ready to get started? Contact our local team today!
