Renting Out Your Home
In the economic slump, many homeowners have decided on renting out their property instead of selling it. Go through this quick guide to view your own situation and make decisions based on the information provided within.
Does it make sense financially?
Before putting tenants in your property, you need to evaluate the financial costs and benefits. Firstly, you need to find out how much you can rent your property for, and how this adds up compared to your other costs such as the mortgage. Invite a handful of local rental agents to make an estimate of your property’s rental worth; this will help you to figure out where it stands in the local market. Agent’s appraisals are free and there is no obligation to have them market your property.
With an estimate of the income you are likely to receive from the rental, you can now compare this figure to the costs of keeping the house (such as the mortgage and maintenance). You should also deduct the agent’s commission from the rental income before making a decision. It’s worth noting that it will be the tenant’s responsibility to pay the utility bills, not yours!
Choose the right agent
When choosing an agent it is easy to be lured in by the cheapest offer. However, making an informed decision will save you a lot of problems in the long run. Choose an agent with an upstanding reputation and plenty of experience.
Discuss renting out your property with your mortgage lender
It helps to inform your lender of your situation. Explain that you cannot afford to sell in the current economic climate and that renting out your property makes sense. Your mortgage lender will most likely be reasonable and understanding of your situation.
How much design and planning went through your vision of how your new habitat will appear aesthetically. What functionality do you need in your home? A stainless steel kitchen? What about interior home decoration and design items like ceiling fans. Use a website for ceiling fan purchases, depending on the fan you like. If you have a fashionable, up to date home you may want a, ‘cool by design’ ceiling fan from the a local business or e-commerce store.
Decorate your wallpaper with possibly 2-3 colors. No more, no less. You will be Golden.
While it is essential to thoroughly screen your prospective tenants (your agent will do this but you should personally be comfortable with whoever is living in your property), you need to make sure you are covered by buildings insurance. In the unlikely event that a tenant damages your home or leaves without paying you rent, you need to make sure that you are covered. There are many different buildings insurance schemes around, make sure you pick a comprehensive one within your budget!
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