Know When Renting Your Property the Right Decision

Perhaps you are considering turning a second home into a rental property, or maybe you are looking to rent out your primary residence or even just a bedroom within it.  There are a few reasons why any of these would be a great decision.  Perchance the market has taken a turn or you owe more on your property than it is worth, leaving you unable to sell.  Maybe you have a second property that is being largely unused, or you have been transferred temporarily out of town. In any case, rather than leaving your property sitting vacant, it can be a great idea to get a tenant.  A good tenant will not only help to cover the expenses associated with the property but also deter looters, help with the upkeep, and hopefully contribute to your monthly cash flow.      

Know Your Responsibilities as a Landlord

The idea of additional income is the most common reason you might convert your property into a rental property, but being a landlord takes a lot of responsibility.  Your new role will include repairs and maintenance to the property, showing the property, collecting rents, screening, accepting, and potentially evicting tenants, ensuring that the tenant is following the terms of the lease and the HOA, if applicable.  Make sure that you are up to the task before you take the next steps.

Prepare the Property

Now that you’ve established your own preparedness, it’s time to get your property up to speed.  Take a look around you at existing comps (similar rental properties in the area).  Notice what amenities are being offered to potential renters.  Based on what you find, you can assess your own property and decide what repairs and upgrades need to be made.  The tough part about this is remembering not to go overboard.  You will need to take into consideration whether or not the money you sink into the property will be offset by the rental income you will be able to recoup. You may want to hire a professional cleaning company to come in once it’s all said and done to ensure that your property looks its very best for potential renters.    

List Your Property

The first step here is to determine the monthly cost of your rental property.  Based on area comps and the aforementioned repairs, what can you reasonably charge to cover your own needs and still be competitive in the market?  Take flattering pictures of your property that highlight all of its best features.  Use words like “granite”, “stainless steel”, “wood floors”, and “state-of-the-art” when writing up an ad to post.  List your ad in newspapers and well-known websites, or create flyers to post locally. 

Find Your Tenants

This will be the most important step in the rental property process.  Make sure that every potential tenant fills out an application and supplies you with references (that you actually follow up with).  You will also want to be positive that you run both a credit report and a criminal background check on each applicant through an accredited screening company.  Knowing who is residing in your space and that they will be able to cover the agreed upon expenses is extremely important.  

Write Up a Strong Lease

Now that you’ve found your tenant, it’s time to go over the lease.  Consider sitting down with a lawyer to ensure that all of your bases are covered.  Your lease should include required deposits, rental due date, penalties for late fees, which party is responsible for what repairs and maintenance, list of acceptable occupants, rules regarding conduct and noise, your pet policy, any HOA rules, who will be responsible for HOA fees, and terms for eviction, as well as any other terms you deem to be important.

Consider Hiring a Management Team

A professional property management company will help to ensure that your rental property stays maintained and that your tenants follow the terms of the lease.  They will also handle any legal action or eviction notices, should that become a factor.

Looking to List an Apartment Rental in Hattiesburg?

If you’re looking to list or find an apartment rental in the Hattiesburg area, we would be thrilled at Apartment Hattiesburg to help you on your journey.  We offer our clients a wide range of quality apartment living,  as well as an experienced team of advisors to help you every step of the way.  Take a look at our beautiful properties today!