| So you've decided that instead of selling your | | | | and make decisions in an emergency if you |
| home you want to turn it into rental property but | | | | cannot be reached. |
| simply putting a for rent sign in the front yard is | | | | Become a lease expert. |
| not enough. Here are a few items to consider | | | | Although there is no standard lease, several items |
| before opening your door to renters. | | | | should be considered when writing a lease including: |
| Learn your states landlord/tenant laws. | | | | - Amount and schedule of rental payments |
| Every state offers protections for both tenant | | | | - Term of lease |
| and landlord, it's vital that you know and | | | | - Renewal and termination of the lease |
| understand both sides. | | | | - Required deposits |
| Is your area zoned for rental? | | | | - Miscellaneous fees |
| Of course it's wise to find out if you can even | | | | - Utility payments |
| rent before you go to the trouble of getting | | | | - Repairs and maintenance |
| anything else done on your list. Your city | | | | - Restrictions on use of property, including |
| government, homeowners or condo association or | | | | subletting. |
| board will have the answers for you. | | | | - Landlord inspection |
| Once you've obtained this information you can | | | | - Liability insurance |
| now begin to focus on the mechanics of getting | | | | - Death of landlord or tenant |
| you home ready to rent. | | | | Again seek the help of a professional; in this case |
| What kind of rent can you get? | | | | a lawyer, to make sure you've covered your legal |
| A rule of thumb is the lower the house appraisal | | | | bases. |
| value, the higher percentage of rent-to-value you | | | | Are you renting to the tenant from hell? |
| can expect to get, and vice versa. Another | | | | Check your tenants. It's not obtrusive to ask for |
| consideration is what similar home rentals in your | | | | references or at a minimum you should call their |
| area are going for. Also take into account your | | | | previous landlords. A background check is wise as |
| location, rentals near schools, shopping centers | | | | is a credit check because the last thing you need |
| and those with easy access to freeways and | | | | is a rent check that you can play basketball with. |
| main streets have proven to be successful. | | | | Make yourself accessible. |
| A complete home inspection now, means you | | | | Even if you are the absentee landlord it's in your |
| sleep better later. | | | | best interest to establish contact with your |
| Spend the dollars and have a certified home | | | | tenants and leave them contact information |
| inspector do a thorough inspection of your | | | | should they need to get in touch with you. Of |
| property. The small things you may not notice will | | | | course you'll want to establish ground rules for |
| be easily found by an experienced professional | | | | contacting you including the chain of command so |
| and can save you serious problems down the | | | | your property manager is in the loop if an issue |
| road. | | | | arises. |
| Will you be an absentee landlord? | | | | Rental property has long been a successful |
| If you're not going to be available in person it | | | | enterprise for those willing to make the effort to |
| essential you have a manager that is reliable, | | | | provide a safe, comfortable home for their |
| honest and trustworthy. This may be the Boy | | | | tenants. If you take the time to properly prepare |
| Scout motto but it can be a lifesaver to you. If | | | | your home, protect yourself legally and screen |
| you can't be there you will need someone who | | | | your tenants you too will enjoy the rewards of |
| can handle problems with the house or the renter | | | | being a landlord. |