Katie McBride's Blog
Home is the place where you go to enjoy ultimate privacy. It’s generally not the place where you’d want perfect strangers sleeping on your bed, lounging on your sofa or cooking in your kitchen. Yet, that is exactly what some homeowners have been welcoming.
Important points to consider before you rent out your home
Renting out houses has become a way to generate income. It’s becoming somewhat of the Uber or Lyft of the overnight stay world. Renting out houses has also become more convenient. Digital technology has made it easier to find tenants.
Because of digital technology, people seeking a house to rent for a few days, a week or perhaps a month or longer, can find you with the click of a button. Due to the short length of the rentals, you could to rent out your house without having to buy a second home. Yet, that doesn’t mean that it will always be a piece of cake. Following are some important points to consider if you’re thinking about renting out your house.
- Post security deposit information in your rental house listing. Also, indicate when the deposit is required and when the deposit will be refunded.
- Add a picture of your home to your online rental house listing. As a safeguard, requests that tenants provide a photo ID.
- Collecting rent is a must. You could collect the funds up front or at the end of the rental period.
- Depending on how long you rent out your house,damages could occur at the property. You could be responsible to arrange and pay for these repairs.
- Keeping the property up to housing codes keeps you legal as a landlord. It could also help you to attract more renters. For example, you’ll have to ensure that there is adequate heating, clean running water and cooling.
- How about pets? Decide if you are going to let people who rent your property bring their pets inside your home. If you do,have a plan to clean when the tenants leave. Also, take into account that pets could damage one or more of your belongings.
Additional points to consider including what to do should you decide to stop house renting
Clearly state what you are responsible for and what the tenant is responsible for in the rental agreement. Also, outline in detail what the start and end dates of the rental are. Have a list of emergency and legal contacts on hand should a tenant get injured on your property or refuse to vacate at the end of the rental agreement.
Speak with other homeowners who have rented out their house. Get the inside scoop on what the arrangements are like. Don’t just listen to the success stories. Pay attention to the cautionary tales as well. Approach renting out your house from a business perspective, and be certain to conduct a background check on prospective tenants before you give them the keys to your front door.
If you decide to get out of the house rental business and sell houses that you rent, check with your accountant to see how much profit you can receive before you have to pay federal taxes on the sale of the house. You may have to pay residential and investment taxes on the sale.