How much will your home rent for?
New landlords are often unsure about how to begin turning their property into a rental. If you’ve been living in a home that you’re now ready to put on the rental market, or you’ve inherited a property that you want to rent to tenants, there are a few things you need to do before you list it and start screening renters.
Pay Attention to Curb Appeal
First impressions are important in every part of the real estate business, whether you’re selling a home or renting it out. Make sure prospective tenants find your property appealing. Curb appeal is incredibly important, whether you have a single-family home or a unit in a condo or apartment building. Make sure the property looks like a place that good tenants would want to call home. Mow the lawn and keep the bushes trimmed. Plant a few flowers and power-wash the property if there is debris and dirt settled into crevices and cracks. Provide a landscape that is both pleasing to look at and easy to maintain.
With your curb appeal, prospective tenants will either drive past the house to avoid seeing it, or they’ll eagerly go inside to get a look at the home’s living space.
Cleaning and Repairing Your Property
Before you show your property to prospective tenants, it needs to be clean and functional. Everything has to be removed from the home, including your personal possessions or belongings that were once the property of your former tenants or family members. Clear out all clutter and have the home professionally cleaned. You won’t find high quality tenants who are impressed with a dirty home.
Go through the property carefully and fix or replace anything that’s broken, worn, or old. If the appliances look like they’re out of a 1980s sitcom, upgrade them to energy efficient appliances that are modern and easy to use. Pull up old carpet and replace all the light bulbs. You want to offer tenants a clean, updated property where everything works the way it should.
Update Your Insurance Policy
Another thing you need to do to turn your property into a rental is to update your insurance policy. If you were living in this home previously, your homeowner’s insurance policy will no longer apply. Make sure you convert it to a landlord policy, and be sure you have enough liability coverage as well as loss of rent insurance. You don’t want to move tenants in without having the right insurance in place.
Proper Pricing and Marketing
Once the home is ready for occupancy, you need to think about a rental price. Talk to a property manager about comparable rental values in the area so you know what sort of range to be thinking about for your own home. You don’t want to underprice the property because you’ll lose money. But, you also don’t want to over-price the property because it may stay vacant longer, and that will cost you money as well.
After you’ve settled on a competitive rental price, begin marketing the home online and with yard signs. Cast a wide net so you have a large pool of qualified tenants interested in your rental property.
Working with a professional property management company can help you get your property ready for the market and rented to great tenants quickly. If you have any questions or need any help, please contact us at South Bay Property Management Pros.