How to Rent Out a House

If you have a property that you are just sitting on, you may consider renting it out. Renting can provide the owner with a steady monthly income with little hassles. You need to do several things before you can rent out a house.

Instructions

Difficulty: Moderate

1. Decide if you can be a landlord. Renting involves the responsibility of providing your tenants with a safe and up-to-date home. You are responsible for fixing any problems within the home.
2. Figure out the cost of running the property. Before you go through the process of renting out a house, see how much you will have to put out to maintain the property. Consider mortgage payments, insurance and maintenance in your figures.
3. Calculate a rental price. Based on the area and condition of the house, decide how much you are going to charge tenants to rent the place. You will also decide whether or not to include the cost of utilities in the price.
4. Know the laws. Before you rent out a house, you need to find out your state's laws regarding rental properties. These laws are designed to protect tenants and landlords from unfair practices.
5. Interview the potential tenants for your rental property. Screen your candidates carefully because good tenants can make or break this investment. Design an application form and check all the listed references.

Tips & Warnings

• You can perform the maintenance on the rental yourself or you can hire someone to do it. Many landlords find it is worth the money to avoid the hassle of being constantly available to fix any problems that arise.
• Set aside money to handle any maintenance expenditures, and set up a separate checking account to control the rental business funds.