When the property market is on a slump, selling a house can be extra challenging. If you are in this predicament, one alternative you can explore is to rent out your house. When done properly, this endeavour can become financially rewarding, serving as a potential source of extra income.
In case you want to give this option a shot, you need to keep in mind that you have to do it the right way. Otherwise, it can end up becoming problematic instead of profitable. Below is a guide on how to rent out your house properly and successfully.
Assess Your Property
Prior to renting out your house, you need to ascertain that it meets the minimum physical standards set by the government. This means that your property should be in good condition inside and out. All essential parts like floors, doors, roofs and walls should be free from damp and not defective. It is also mandatory that the house has adequate ventilation, heating and lighting. You are also required to provide facilities for laundry, food storage and food preparation like washing machine, clothes dryer, oven and grill and extractor fan, to name a few.
You can go online and visit related government websites to get a hold of the complete list of requirements you need to comply with. To avoid complications later on, make sure you make the necessary adjustments to meet the minimum standards.
Research about Rates
Of course, before deciding to let your house, you need to know if this endeavour is truly going to be profitable. Research about the rental rates of properties in your area. You must also look up expenses associated with renting out a house. This typically includes maintenance costs, property management fees (in case you hire a property manager) and tax on the rental income, amongst others.
Ideally, your net income must at least be enough to pay for the property’s mortgage with some extra to cover maintenance and repair costs.
Talk to Your Mortgage and Insurance Provider
Your mortgage lender and insurance provider must be informed about your plans to rent out your property. For one, you cannot proceed with this endeavour without obtaining a formal consent from your mortgage provider. Letting your house without their consent may be a breach of the terms and conditions of your mortgage.
Similarly, your building and contents insurer must also be informed so that they can make the necessary amendments to your policy. In addition to your current building and contents insurance, you need to get a landlord insurance.
Decide on Who’s Managing the Property
Who will manage the property? Will it be you or a property management company? While it may seem easy, managing a rental property demands time and effort. It’s not just about finding good tenants; it also involves collecting rental fees, monitoring if lessees are adhering to the agreement, scheduling repairs, overseeing the property’s maintenance and addressing complaints. If you do not have the time to take on these responsibilities, it’s better if you hire professionals to manage your rental property.
Apart from getting good tenants, a property management company can take care of rent collection, property inspections, maintenance services and other pertinent tasks. With professionals at the helm, this endeavour can become less taxing and time-consuming for property owners like you.
Prepare Your House
Renting out a house is no different from selling one in that you need to make the property appealing for potential tenants. Repair all functional and cosmetic problems. If your walls appear dated, apply a fresh coat of paint to make them look fresh. Ensure that the house is thoroughly cleaned – scrub tiles, wash the windows, vacuum and spot-treat the carpet, etc. Get rid of clutter and unpleasant odours. Meanwhile, if you are renting out the house furnished, make sure that the appliances and furniture are in tip-top condition.
Be thorough when screening potential tenants. Request for references and call them. Ask pertinent questions about the person concerned like if she pays on time and keeps the property clean. Do not also forget to check the potential tenant’s credit history. Be sure to personally interview them as well. Ask as many questions as you can but be careful not to sound discriminating.
Learn more about how to rent out your house in Ireland. Call us at 01 495 9020 today!
Photo by MarkMoz12