Trying to rent your home in northern Virginia? Renting can be tough… With the housing market in its current condition – even here in VA, where the economy has been better – it’s become very common for people to rent out their homes. Whether it is because of a job relocation or an investment, rentals are all over the place. Often times, being a landlord is a new role and the learning curve can be fairly steep. But with these tips, you’ll be well on your way to having a positive experience.
Finding Great Tenants
When most people go into this, the primary thing on their mind is to cover their mortgage payment. Unfortunately, that’s not the right way to approach this. What you actually need to do is find a good tenant who will pay on time, maintain your property, and not cause you any headaches. To do this, you will need to be very proactive in screening. You must learn all the rules associated with the Fair Housing Act to ensure that you do not accidentally discriminate, and you will need a signed waiver from applicants in order to perform a background and credit check.
Figure Out the Market Value for Rent
In most cases, the market value of rent is very different than the mortgage payment. It may be higher or lower, depending on the local housing market. You will need to do your own research to determine what’s realistic for a home with X bathrooms, Y bedrooms and Z square footage. If you are above the market rate, you will find it difficult to fill your vacancy.
Draw Up a Good Lease Agreement
You must use a lease agreement in order to protect both you and your tenants. Lease agreement templates are available in several places online, but you should always hire a real estate lawyer to ensure that it matches up with local requirements and your specific circumstances.
Update Your Insurance Policy
You will need different insurance as a landlord than you did as a homeowner. This insurance is usually known as rental home insurance, and covers your legal costs, loss of rental income, medical expenses, repairs and so on, in the event of a catastrophic event like a fire. It does not, however, include your tenants’ belongings — they will need separate renter’s insurance.
Consider Hiring A Management Company
Since you are moving, it will be difficult for you to maintain your landlord duties, such as maintenance and property upkeep. Property management companies, such as Real Property Management, will collect rent, perform or supervise maintenance and repairs, and otherwise deal with all the tenant’s needs and concerns. This can make the process of renting out your home much less stressful, as they will even place tenants for a fee.
Be Aware of the Legalities
If you have problems with your tenants, you are actually quite constrained in the actions you may take to rectify the situation. Things like evictions and dealing with late rents or property damage have many rules in place, and you must abide by them all, or risk litigation. If a tenant becomes a problem, the very first thing to do is to consult a lawyer. Renting your home can be a sound financial decision provided your cover all your bases. For more information on our property management services, contact Real Property Management today!
