Considering Renting Out Your Home?
Many homeowners are choosing to rent out their homes while they wait for the market to recover. Wondering if this is the right move for you? There are many things to consider, but a few of the most important are:
1. Calculate home much the total cost is of maintaining your home. (mortgage, maintenance, repairs, professional services)
2. Next, meet with your REALTOR and look at rental prices for homes in your area with similar features as yours. Will this cover your expenses?
3. List your rental property with a REALTOR. At this time you'll need to determine what utilities you will include, how long you're willing to lease the property for (1 yr vs 2 yr) and when it will be available.
4. Your REALTOR will be able to enter the property into the MLS. This allows thousands of other REALTORs to access the information and send to their clients.
5. It's important to get the home professionally cleaned, apply a new coat of paint and clean the carpets/flooring prior to going into the MLS. Most potential renters have little imagination when walking through a property, so giving off the best first impression possible is critical.
6. When an interested party comes along, your REALTOR will have them fill out a Rental Application and will run their credit. Based on their income, past rental history and credit report, you can now make a decision.
7. Once you pick a prospective lessee you would like to rent to, your REALTOR will draft a lease. The security deposit is typically paid upon signing of the lease. The first month's rent will be paid on the move-in date prior to the lessee receiving keys.
8. Commission paid to the REALTOR varies but is usually taken from either the security deposit or 1st month's rent. You may also cut a check directly to the brokerage if you prefer.
Below is the Standard Residential Lease used by Mainstreet Organization of REALTORs. This is the lease I use for all of my clients. Feel free to look through and familiarize with this document:
Many homeowners are choosing to rent out their homes while they wait for the market to recover. Wondering if this is the right move for you? There are many things to consider, but a few of the most important are:
- Is it worth holding the property?
- How will you feel about strangers moving into your home?
- How willing and able you are to manage a rental property?
1. Calculate home much the total cost is of maintaining your home. (mortgage, maintenance, repairs, professional services)
2. Next, meet with your REALTOR and look at rental prices for homes in your area with similar features as yours. Will this cover your expenses?
3. List your rental property with a REALTOR. At this time you'll need to determine what utilities you will include, how long you're willing to lease the property for (1 yr vs 2 yr) and when it will be available.
4. Your REALTOR will be able to enter the property into the MLS. This allows thousands of other REALTORs to access the information and send to their clients.
5. It's important to get the home professionally cleaned, apply a new coat of paint and clean the carpets/flooring prior to going into the MLS. Most potential renters have little imagination when walking through a property, so giving off the best first impression possible is critical.
6. When an interested party comes along, your REALTOR will have them fill out a Rental Application and will run their credit. Based on their income, past rental history and credit report, you can now make a decision.
7. Once you pick a prospective lessee you would like to rent to, your REALTOR will draft a lease. The security deposit is typically paid upon signing of the lease. The first month's rent will be paid on the move-in date prior to the lessee receiving keys.
8. Commission paid to the REALTOR varies but is usually taken from either the security deposit or 1st month's rent. You may also cut a check directly to the brokerage if you prefer.
Below is the Standard Residential Lease used by Mainstreet Organization of REALTORs. This is the lease I use for all of my clients. Feel free to look through and familiarize with this document:
| residential_lease.pdf |