Are you looking to earn passive income by renting out your property? Not sure how to go about the whole process? Don’t worry; once you know and follow the steps, you’ll be a savvy landlord in no time.
How to Rent Out Your Property
Step 1: Decide if you will go DIY or get a realtor
It doesn’t matter whether you’re looking to sell, buy, or rent a property, you will usually always have to decide between DIY-ing (do-it-yourself) or getting a realtor. It is an age-old question asked by customers in the property market, and there isn’t a single answer to this question that would work for everyone.
The best way to decide is to understand your situation and your needs, especially if you need help due to time restrictions and lack of knowledge. If you’re thinking of renting out your place the DIY way, you have two clear options.
The first involves you making a banner with your contact information and your property details (e.g., the number of rooms and bathrooms), and then placing it on the exterior of the property.
The second option is to take quality exterior and interior photos of the property and put it up online for potential tenants and post it on property transaction websites, such as Ohmyhome. You can also opt to do both in order to attract more tenants.
A realtor will make things a lot easier for you because they will handle the majority of the process while keeping you informed. This is especially true with our trusted agent service. Photos will be taken for you and marketed online, with consistent refreshing making sure that the property stays on the first page of the site until it’s rented out.
Step 2: Set your rental pricing
Without a realtor to advise you on the price range for your property type in the area, you’ll have to conduct research yourself. This can be done by driving around and calling the phone numbers on the for rent signs and banners. You can also visit online property listing sites, and filter them to see similar details to your property. If you’re still not sure, call a few real estate agencies and inquire about the rental prices for your property type in the area.
Take into account the negative and positive attributes of your property, as this can affect the price. A negative attribute would be having a sewage drain located right behind the property, while a positive attribute would be that it is only a five-minute walk to the LRT station.
The research you conduct, along with the list of negative and positive attributes, will help you to determine your price.
Step 3: Give your property a makeover
You need to make a good first impression on potential renters, so consider fixing up your place. The truth is, we’re often used to the quirks of our home – water stains on the bathroom floor, paint peeling in the living room, the doors that don’t lock all the way – but these are the things that may turn potential tenants away.
Expect to spend up to a few thousand on repairs and improvements. The exact amount would depend on the upkeep of your house and if you want to do any major refurbishments and renovations to the property. The general rule is to give the whole place a new paint job and a deep clean. Also, make sure you fix door knobs and grease the door and gate hinges. Make your home look as clean and new as you can.
Step 4: Identify your ideal tenant
If your property is a four-bedroom house near schools and office buildings it’s safe to assume that your potential tenants will be a family. If it’s a one-bedroom studio apartment, then you might expect either a bachelor or a young couple.
Why is it important to know what kind of tenant will prefer your property? It will help you decide whether you would want to rent the property out as either semi or fully furnished, or with no furnishings.
Step 5: Schedule a viewing
If you’ve hired an agent, then they will show potential tenants around the property. However, if you’ve decided to do it yourself, then you should take a few precautions. Make sure to have someone with you during viewings and to secure valuables if you haven’t moved out yet.
Keep in mind that you have to show them that this property can easily be their home. Set the stage, come early, and make sure to tidy up and if you’re still living there. Try to take down family photos and declutter. After all, you’re trying to get them to envision themselves living there.
Potential tenants will surely ask questions during the viewing regarding any renovations, or the number of tenants you had previously. This is so that they have an idea as to the condition of the house. Make sure to answer them honestly.
During this time, you’ll also want to clarify certain details that would be written into the tenancy agreement, such as who pays if there’s a leak in the roof. You’ll also want to clarify how long the potential tenant wants to stay. Will it be a two- or a three-year-long lease or shorter.
If you cannot offer physical home viewings, you can still offer a virtual property tours. Ohmyhome’s platform allows you to show off your home easily.
Step 6: Get the deposit and sign the tenancy agreement
Lastly, secure the tenant with a deposit and a tenancy agreement. You’ll have to collect a deposit (worth about two or three months’ rent) while the agreement is being written out and amended if needed. Then, the only thing left to do is sign the agreement.
There you go, you now have a tenant in six easy steps! We’re sure you’re eager now to start the process and to start earning a side income. Just remember to respect the tenancy agreement and your tenant’s privacy.
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