More and more homeowners are now marketing their properties as rentals on sites like Airbnb. Some people in the real estate industry are even matching rental prices to hotel prices. While that may seem ridiculous and off-putting for some, it is still a great way to get some extra cash. Renting out your property is indeed a great way to earn extra income, especially if it is in a prime location.
In a busy area like Salt Lake City, you can hire a property management company to do the hard work for you. They will take care of collecting payments, evicting tenants, and marketing your rentals. The only thing that you will need to do is monitor your revenue, and make the necessary repairs and renovations in your properties.
When it comes to renting out your property, there are a number of things that you should first do. Read on and keep the following things in mind.
Get insurance
Make sure that your property has the necessary insurance before you start renting it out. Whether it is an Airbnb type of rental scheme or the more traditional long-term schedule, having that insurance can give you breathing space should anything bad happen to your property. If your tenants want their own insurance plans, there are also personalized rental insurance policies that they can invest in.
Hire professionals for the more technical work
Professionals such as accountants and lawyers are necessary before you start renting out your property. An accountant will maintain records of any transactions that will happen with your properties and make the necessary tax adjustments.
Hiring a lawyer, meanwhile, will help you iron out the details on your lease agreements. This will protect you from possible legal battles in the future due to unpaid dues, unpaid utilities, and any damages made to your property.
Repair and renovate your property
Before you put your property in the market, you have to make sure that it is up to home and safety standards. No one will want to live in a home that lacks the criteria to pass the standards that we have today. This is especially true if certain areas like the bedroom and bathroom are not at par with safety and hygiene practices.
Market your property
Once every financial and legal detail is finished, you should now market your property to the public. Before you do so, you can even establish certain criteria to prevent any damages to the property. For example, you would not want to rent out your grandmother’s ancestral home to a group of college kids.
Have a criteria set so that you can prevent damages, ensure that the people renting the property will be able to pay on time and will not pose a problem to the neighborhood and community, and everything else that you would want to list down.
Renting out your property is a great way to earn additional income. If done correctly, you and your lessee will have a fruitful and positive relationship.
