How to Rent Out Your House in Louisville
If you’ve begun to notice how renting is a good way to generate passive income, then you’re not alone. Turning your real estate into a rental can be a lucrative way to earn in addition to stock market investments. If you have a long-term tenant, the income is regular.
There are things to consider before taking the plunge into the rental business. Researching more about what makes a rental successful will aid you in your financial goals. Check out these important steps when it comes to being a landlord:
Tips for renting out your Louisville rental home
Plan how you’ll market your property
Determine your target market. Is your Louisville Kentucky home primarily a vacation home? Promote it on specific websites like Airbnb. Make sure to post a listing for easy bookings. If your home is not going to be a short-term rental, you’d want to advertise it on popular sites such as Trulia, Zillow and Hotpads.com. This is where renters congregate and look for their next rental unit.
Before listing your rental home, take time to produce high quality and attractive photos. People are drawn to beautiful images that make them wish they live there. It pays to have professional pictures posted as these can elicit more inquiries. Once you receive some interest, answer the calls and schedule the property showings. The quicker you get the house rented, the quicker you enjoy the extra income.
Screen your tenants properly
When you schedule property showings and prospects are interested, they’ll fill out an application form. You’ll then need to assess the information provided. Make sure you verify the identity and the number of proposed occupants. You also need to ask for references. This makes it easier for you to conduct a background check on the potential renter.
You’ll need to know the prospect’s credit score, job information and financial capacity. Check for criminal records, bankruptcy or eviction. These are red flags and you want to avoid being embroiled in these types of situations. Confirm the listed details in the application but don’t forget to be mindful of the Fair Housing Act.
Increase your legal knowledge especially on landlord-tenant laws
As a landlord in Kentucky, it’s your duty to learn about the landlord-tenant laws. There are procedures in keeping your tenant’s security deposit. You’re required to keep it in a separate account and the tenant will need to be notified of the account number and where it’s stored. If you don’t brush up on your legal knowledge, you could end up breaking the law. Avoid wasting your money on paying a penalty or paying for attorney’s fees in case of a lawsuit.
Aside from raising awareness on your landlord responsibilities, you should know your tenant’s rights as well. When inspecting your Louisville Kentucky home, you need to send a 2-day notice to the renter beforehand. This may sound like a minor thing but to be compliant with the law, learning these details will protect you in the end.
Get your property rental ready
Prior to signing up a new tenant for your Louisville Kentucky home, it’s essential to inspect it first. Are there damages? Are the appliances working well? Are there loose wirings, leaks or minor pest infestation? Fix them all. Focus on providing a safe and habitable space for the tenants. Rather than improving on minor cosmetic changes, focus on the HVAC working properly and ensuring that hot and cold water is well-supplied.
Make sure that the rental unit is sanitary for the dweller. Provide a garbage receptacle and do mold remediation if mold is present. Aside from that, make sure that smoke and carbon dioxide detectors are functional. Ensure emergency exits are present. You’re responsible for the tenant’s safety when you’re renting your home.
Make maintenance a priority
Normal wear and tear occurs and as a result, damages are inevitable. As a landlord, set a budget for your Louisville Kentucky home for repairs and replacement. It’s unfair to let a renter shoulder the damage from a carpet that’s already 5 years old. Depending on the quality, it’s expected to last at a minimum of 5 years. So take this into account when computing for property damages.
To maintain your rental home easier, you can also choose neutral shades of paint. This way you won’t need to spend so much when repainting. If you choose a multi-color palette, you’ll spend on tons of paint buckets. The best thing about neutral hues is they won’t clash heavily with a renter’s furnishings.
Draft a clear leasing agreement
Create a solid leasing contract that outlines your policies. What are the areas that a renter is responsible for maintaining? Is a pet allowed? What constitutes a violation? What is the eviction process? Do you have a grace period in rental payment? What are the conditions for breaking the lease early?
Making a lease goes hand in hand with knowing the landlord-tenant laws. You can’t include a provision that isn’t legally permitted. Have it reviewed by a lawyer to ensure its validity. A good lease also minimizes disputes and acts as a guide for both landlord and the tenant.
Engage the services of a property management company
Being a self-managing landlord can be a tall order. Tenants can have a lot of expectations considering the level of rental competition. They demand great customer service, prompt repair action, and well-maintained rental space. A property management company is able to manage a rental property efficiently given its experience and business niche.
In terms of investment, a property management company usually has the advanced software and systems to make the rental operation run smoothly. They have the resources and huge network when it comes to filling out the vacancy of your Louisville Kentucky home. Aside from that, they’re able to determine the right rental price to attract the target market and deal with issues like evictions.
The Bottom Line
A lot of tasks are listed under a landlord’s role. Renting generates extra income but it comes with a myriad of duties as well. To succeed in the industry, it helps a great deal to partner with a professional property management company who has solid experience. Contact Alltrade Properties today!