Some Tips for Renting Out Your Home

Renting out your home can give you a great source of income, but there are a few things you must do before moving tenants in. Figuring out your finances, protecting the property, and making the living space more attractive should all be on your list.

Renting Out Your Home

You need to be smart when renting out your home. Likewise, without taking the proper steps, you can lose money. That’s why you should consider these tips to take full advantage of your rental property.

Create a Budget

You should examine your finances before deciding to rent. To start, look at the rental market in your neighborhood to figure out what you can ask for. You can then use this number to determine how long it would take before you start profiting from rent. After all, you’ll probably have some expenses before you can advertise, such as minor repairs and major upgrades.

Hiring an accountant would be beneficial at this stage, especially if this is your first time as a landlord. Accountants can help you determine your taxes, including any deductions you qualify for.

Vet Tenants

Background checks are essential. Likewise, you should run one on the person or people applying to live on your property before signing a lease. The internet makes doing so easy, as many online services charge less than $40. A background check reveals a criminal history, financial debt, and even civil suits, allowing you to verify if a tenant is someone you want living on your property.

Require Renters Insurance

Though you may technically be a homeowner when renting your residence, you can’t utilize homeowners insurance to protect your property. Instead, you need landlord insurance to cover damage from the following:

• Fire
• Vandalism
• Tenants
• Natural disasters

Unfortunately, these policies don’t cover renters’ belongings. Instead, tenants will need to buy renters insurance. What does renters insurance cover? Renters coverage protects tenants from liability, reimburses living expenses should damage force them to vacate the home, and replaces damaged personal possessions.

Hire a Property Manager

Running a rental property is a full-time job, so you should hire a property manager. These professionals take care of day-to-day tasks:

• Collecting Rent. 
• Arranging Maintenance Work
• Communicating with Tenants

Most managers pay about 10% of the rent, which means you won’t get as much income. However, many landlords find this arrangement is worth the peace of mind and convenience.

Renovate

Be sure to renovate an older property. Thus, you may need to renovate it. Renters want a place with all the modern frills, and older houses may take longer to lease or not bring in as much money. While renovations may initially be expensive, they boost property value and pay off in the long run. Here are some upgrades for maximizing equity and appealing to renters:

• Additional Outlets
• Doorbell Camera
• Flooring
• Kitchen Remodel
• New Paint
• Bathroom Remodel

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.