Rental Properties
Renting doesn't have to just entail posting pictures on Craigslist and hoping you find a qualified tenet. Thalia and Company Realty understands that your house is YOUR investment! Call us today to talk about how we can help you rent your property!
4 Things to Know Before Renting Out a Home
Information courtesy of USAA
Renting out your home before a permanent change of station move may seem like a good idea. That is, until the tenant trashes the house, inside and out, and you have no one to oversee the repairs. Sure, renting out a home can lead to plenty of headaches, but there may still be good reasons to stick that "For Rent" sign in your front yard, says Mark Burrage, director of home advice for USAA. They may include increased cash flow, potential tax benefits, appreciation over time and flexibility to sell later. "It can be very rewarding, if you find ways to mitigate any risk involved," Burrage adds. Mitigating risks means having a plan. Save yourself time and trouble by understanding the pitfalls of converting your home into a rental property. Here are three things aspiring landlords should know.
Know the costs
Research rental rates in your area to know what you can ask and whether listing your property is even worth the effort. Depending on the market, you may not be able to cover your monthly mortgage. To help protect your investment, hire a quality property manager — someone with proven experience, not just the cheapest option — and understand what services they provide.Don't underestimate the costs for repairs and maintenance on the property, including possible legal fees for enforcing a lease. Also be financially prepared for those times when the house is not rented.
Know the tenants
Just not too well. Renting to friends or family may make it difficult to enforce the terms of the lease. Instead, get to know a tenant by properly screening his or her credit report and running a criminal background check. Encourage your tenants to purchase renters insurance. Find a trusted agent — it can be a friend or family member — within proximity of the home, someone you can rely on to assess damage or other major issues with the property.
Know the law
Consult with a certified public accountant and look up all the relevant tax codes related to investment properties. Research federal, state and local housing laws. Avoid handshake deals and amendments not in the lease agreement, because you won't be able to enforce them.Also be prepared to make timely repairs on the property, or you could face lawsuits from your tenants.
Insure Your Rental Property
Rental property insurance covers many of the same things as homeowners insurance but offers some important additional protection.
Know the costs
Research rental rates in your area to know what you can ask and whether listing your property is even worth the effort. Depending on the market, you may not be able to cover your monthly mortgage. To help protect your investment, hire a quality property manager — someone with proven experience, not just the cheapest option — and understand what services they provide.Don't underestimate the costs for repairs and maintenance on the property, including possible legal fees for enforcing a lease. Also be financially prepared for those times when the house is not rented.
Know the tenants
Just not too well. Renting to friends or family may make it difficult to enforce the terms of the lease. Instead, get to know a tenant by properly screening his or her credit report and running a criminal background check. Encourage your tenants to purchase renters insurance. Find a trusted agent — it can be a friend or family member — within proximity of the home, someone you can rely on to assess damage or other major issues with the property.
Know the law
Consult with a certified public accountant and look up all the relevant tax codes related to investment properties. Research federal, state and local housing laws. Avoid handshake deals and amendments not in the lease agreement, because you won't be able to enforce them.Also be prepared to make timely repairs on the property, or you could face lawsuits from your tenants.
Insure Your Rental Property
Rental property insurance covers many of the same things as homeowners insurance but offers some important additional protection.
Ten Tips for Renting a House or Apartment
By Marcia Stewart
Bring your paperwork
The best way to win over a prospective landlord is to be prepared. To get a competitive edge over other applicants, bring the following when you meet the landlord: a completed rental application; written references from landlords, employers, and colleagues; and a current copy of your credit report.
How to Get a Copy of Your Credit Report
You can order your credit report by mail, phone, or online atwww.annualcreditreport.com or directly from the websites of the three major national credit bureaus:
Review the Lease
Carefully review all of the conditions of the tenancy before you sign on the dotted line. Your lease or rental agreement may contain a provision that you find unacceptable -- for example, restrictions on guests, pets, design alterations, or running a home business. For help reviewing your lease or rental agreement, seeSigning a Lease or Rental Agreement FAQ.
Get everything in writing
To avoid disputes or misunderstandings with your landlord, get everything in writing. Keep copies of any correspondence and follow up an oral agreement with a letter, setting out your understandings. For example, if you ask your landlord to make repairs, put your request in writing and keep a copy for yourself. If the landlord agrees orally, send a letter confirming this.
Protect your privacy rights
Next to disputes over rent or security deposits, one of the most common and emotion-filled misunderstandings arises over the tension between a landlord's right to enter a rental unit and a tenant's right to be left alone. If you understand your privacy rights (for example, the amount of notice your landlord must provide before entering), it will be easier to protect them. For more information, seeTenants' Rights to Privacy and Repairs FAQ.
Demand repairs
Know your rights to live in a habitable rental unit -- and don't give them up. The vast majority of landlords are required to offer their tenants livable premises, including adequate weatherproofing; heat, water, and electricity; and clean, sanitary, and structurally safe premises. If your rental unit is not kept in good repair, you have a number of options, ranging from withholding a portion of the rent, to paying for repairs and deducting the cost from your rent, to calling the building inspector (who may order the landlord to make repairs), to moving out without liability for your future rent. For more information, see the article Renters' Rights to Minor Repairs.
Talk to your landlord
Keep communication open with your landlord. If there's a problem -- for example, if the landlord is slow to make repairs -- talk it over to see if the issue can be resolved short of a nasty legal battle.Resolving Landlord-Tenant Disputes FAQ provides some advice.
Purchase renters’ insurance
Your landlord's insurance policy will not cover your losses due to theft or damage. Renters' insurance also covers you if you're sued by someone who claims to have been injured in your rental due to your carelessness. Renters' insurance typically costs $350 a year for a $50,000 policy that covers loss due to theft or damage caused by other people or natural disasters; if you don't need that much coverage, there are cheaper policies. For more information about renters' insurance, see the article Renters: Protect Yourself From Crime.
Protect your security deposit
To protect yourself and avoid any misunderstandings, make sure your lease or rental agreement is clear on the use and refund of security deposits, including allowable deductions. When you move in, do a walk-through with the landlord to record existing damage to the premises on a move-in statement or checklist. For more information, see the article Protect Your Security Deposit When You Move In.
Protect your safety
Learn whether your building and neighborhood are safe, and what you can expect your landlord to do about it if they aren't. Get copies of any state or local laws that require safety devices such as deadbolts and window locks, check out the property's vulnerability to intrusion by a criminal, and learn whether criminal incidents have already occurred on the property or nearby. If a crime is highly likely, your landlord may be obligated to take some steps to protect you. For more information on this subject, see the article Renters: Protect Yourself From Crime.
Additional Information
Learn more about how to protect yourself from crime -- and get your landlord to intervene if necessary -- in Every Tenant's Legal Guide, by Janet Portman and Marcia Stewart (Nolo). This book also covers important steps you can take in inspecting a place to live, negotiating a lease or rental agreement, getting your security deposit back, and more.
Deal with an Eviction Properly
Know when to fight an eviction notice -- and when to move. If you feel the landlord is clearly is the wrong (for example, you haven't received proper notice, the premises are uninhabitable), you may want to fight the eviction. But unless you have the law and provable facts on your side, fighting an eviction notice can be short-sighted. If you lose an eviction lawsuit, you may end up hundreds (even thousands) of dollars in debt, which will damage your credit rating and your ability to easily rent from future landlords. For more information on eviction, see the Renters' & Tenants' Rights area of Nolo's website.
The best way to win over a prospective landlord is to be prepared. To get a competitive edge over other applicants, bring the following when you meet the landlord: a completed rental application; written references from landlords, employers, and colleagues; and a current copy of your credit report.
How to Get a Copy of Your Credit Report
You can order your credit report by mail, phone, or online atwww.annualcreditreport.com or directly from the websites of the three major national credit bureaus:
- Equifax: www.equifax.com
- Experian: www.experian.com
- TransUnion: www.transunion.com
Review the Lease
Carefully review all of the conditions of the tenancy before you sign on the dotted line. Your lease or rental agreement may contain a provision that you find unacceptable -- for example, restrictions on guests, pets, design alterations, or running a home business. For help reviewing your lease or rental agreement, seeSigning a Lease or Rental Agreement FAQ.
Get everything in writing
To avoid disputes or misunderstandings with your landlord, get everything in writing. Keep copies of any correspondence and follow up an oral agreement with a letter, setting out your understandings. For example, if you ask your landlord to make repairs, put your request in writing and keep a copy for yourself. If the landlord agrees orally, send a letter confirming this.
Protect your privacy rights
Next to disputes over rent or security deposits, one of the most common and emotion-filled misunderstandings arises over the tension between a landlord's right to enter a rental unit and a tenant's right to be left alone. If you understand your privacy rights (for example, the amount of notice your landlord must provide before entering), it will be easier to protect them. For more information, seeTenants' Rights to Privacy and Repairs FAQ.
Demand repairs
Know your rights to live in a habitable rental unit -- and don't give them up. The vast majority of landlords are required to offer their tenants livable premises, including adequate weatherproofing; heat, water, and electricity; and clean, sanitary, and structurally safe premises. If your rental unit is not kept in good repair, you have a number of options, ranging from withholding a portion of the rent, to paying for repairs and deducting the cost from your rent, to calling the building inspector (who may order the landlord to make repairs), to moving out without liability for your future rent. For more information, see the article Renters' Rights to Minor Repairs.
Talk to your landlord
Keep communication open with your landlord. If there's a problem -- for example, if the landlord is slow to make repairs -- talk it over to see if the issue can be resolved short of a nasty legal battle.Resolving Landlord-Tenant Disputes FAQ provides some advice.
Purchase renters’ insurance
Your landlord's insurance policy will not cover your losses due to theft or damage. Renters' insurance also covers you if you're sued by someone who claims to have been injured in your rental due to your carelessness. Renters' insurance typically costs $350 a year for a $50,000 policy that covers loss due to theft or damage caused by other people or natural disasters; if you don't need that much coverage, there are cheaper policies. For more information about renters' insurance, see the article Renters: Protect Yourself From Crime.
Protect your security deposit
To protect yourself and avoid any misunderstandings, make sure your lease or rental agreement is clear on the use and refund of security deposits, including allowable deductions. When you move in, do a walk-through with the landlord to record existing damage to the premises on a move-in statement or checklist. For more information, see the article Protect Your Security Deposit When You Move In.
Protect your safety
Learn whether your building and neighborhood are safe, and what you can expect your landlord to do about it if they aren't. Get copies of any state or local laws that require safety devices such as deadbolts and window locks, check out the property's vulnerability to intrusion by a criminal, and learn whether criminal incidents have already occurred on the property or nearby. If a crime is highly likely, your landlord may be obligated to take some steps to protect you. For more information on this subject, see the article Renters: Protect Yourself From Crime.
Additional Information
Learn more about how to protect yourself from crime -- and get your landlord to intervene if necessary -- in Every Tenant's Legal Guide, by Janet Portman and Marcia Stewart (Nolo). This book also covers important steps you can take in inspecting a place to live, negotiating a lease or rental agreement, getting your security deposit back, and more.
Deal with an Eviction Properly
Know when to fight an eviction notice -- and when to move. If you feel the landlord is clearly is the wrong (for example, you haven't received proper notice, the premises are uninhabitable), you may want to fight the eviction. But unless you have the law and provable facts on your side, fighting an eviction notice can be short-sighted. If you lose an eviction lawsuit, you may end up hundreds (even thousands) of dollars in debt, which will damage your credit rating and your ability to easily rent from future landlords. For more information on eviction, see the Renters' & Tenants' Rights area of Nolo's website.
Forms
|
Would you like to rent one of our listed properties? Download, complete, and submit the Residential Lease Application (listed on the right)!
|
| ||
