The current real estate market has made it abundantly difficult to put up homes for sale in Robbinsdale MN, and earn a significant profit to pay down the mortgage. For this reason, more people have been moving towards renting out their homes, as it is the next best option. Homes for sale in St. Louis Park, MN, are also being rented out instead of being sold.
Renting out your home can be a great way to earn some extra cash, particularly if you do it the right way. As more growing families move away from cities and into the suburbs, many search for homes for sale in the Minnetonka school district as it is more convenient for them. Not only that, but due to its extraordinary location, that is near Lake Minnetonka, the property has recently gained more recognition and popularity.
Whether you are renting out your house in Minnetonka, Robbinsdale, or St. Louis Park, MN, we have compiled a list of the top ten tips you should keep in mind if you want to make your home a rental success.
- Analyze the Real Estate Market Thoroughly and Determine the Rent
The first and foremost thing you should do before renting out your home is analyze your location’s real estate market thoroughly. If the demand for rental homes in your location is low, you will have difficulty finding tenants. You might not receive a high return on investment from your rental property with a low rental income, even if you do. Therefore, knowing the market is crucial because it will give you clarity on what you should expect if you are renting out your home and what rental price to set.
- Find a Good Tenant
This is a vital part of your journey as a landlord because your tenants will be living in your home and looking after it. It is important that you advertise your home through the right medium to get the most suitable tenants.
You should have a robust screening method to have only the best and most trustworthy tenants renting your home. Some of the ways you can do this are by having them fill out an application form that includes all of their basic information, credit card history, any references, and criminal records and so on.
- Make Minor Upgrades
Before putting your house on the market, you need to make sure that it is in the best shape. Repair any cracks or upgrade any lighting or material in the house. This will increase the value of your home and make it more appealing to potential tenants.
- Protect Yourself with a Lease
Whatever type of home you are renting out, it is important for you to have a lease or agreement with your tenant. Make sure that your lease complies with the fair housing, rental and insurance laws of your locality. Here is all that your lease should consist of:
- The lease terms
- Security deposit amount
- Rental due date and penalties for late payment
- Repairs and maintenance responsibilities
- Policies and rules of behaviour
- Eviction terms
- Create House Rules
In your lease, besides the aforementioned terms, you should create a list of rules you want your tenants to abide by. These can include anything, from the number of cars they can park to how much noise is allowed at what times. You need to be completely candid about your rules because it is still your house at the end of the day.
- Get Insurance
Natural disasters are more likely to damage homes than buildings or apartments. For this reason, insurance is very important to have. If you had insurance when you were living in the house, you might want to change it from homemaker’s insurance to a rental home insurance. The insurance will cover any damages, medical expenses, legal costs, and any repairs if needed.
Moreover, having insurance will also give your tenant’s peace of mind and confidence and reflect your professionalism.
- Install Alarm Systems
Typically, renters do not install any security systems in homes. If you install alarm systems in your house, it will be seen as an excellent plus point by tenants, especially those who have children. They will feel more secure and assured of their safety if your home has an alarm system.
- Use a Rental Service or Management Company
Finding the ideal tenant is extremely difficult. By using either a rental service or a management company, you will not be bound to choose a tenant who is paying less or not meeting all your requirements. These services help provide tenants who have the same preferences as you and are willing to pay the rent you have demanded.
- Talk to Your Accountant
Get financial advice from your accountant to decide whether renting out your home will be financially viable and beneficial for you. Find out if the rent will help cover your taxes and mortgage rate. Based on the tax you will have to pay and your expenses, you can decide with your accountant if renting out is a good option for you.
- Prepare for Emergencies and Evictions
As a landlord, you need to be prepared for any sort of emergencies. By getting insurance, you will be prepared for these emergencies for the most part. However, you will need to get an attorney when it comes to evictions.
These top tips will help you successfully rent out your home to the ideal tenant and earn a profit in the long term. You should take these tips seriously because as real estate professionals, we know how these tips can make your home a rental success. If you need more help or guidance, please contact The Advisory Realty Group.