How to Rent Out Your Home

If a job or family situation takes you away from home, consider renting out your home to offset all or part of the costs of your monthly mortgage payment.

Difficulty:

Moderately Challenging

Instructions

Things You'll Need

• Newspaper Ads
• Leases
• Property Condition Report
• Rental Applications
• Pens

1. Consult local building and zoning authorities to see if any rental restrictions apply to private residences in your area.

2. Review mortgage documents for restrictions about renting out your home while the mortgage is in effect.

3. Determine how much rent you should charge by checking rental rates of similar properties in your area in the classified section of the newspaper.

4. Advertise your property to attract applicants.

5. Prepare or obtain a rental lease for the property that spells out specific terms and conditions.

6. Interview prospective tenants while showing the property. Accept applications and security deposits.

7. Check credit, personal, and rental references of applicants, then select tenants for the property in a non-discriminatory manner.

8. Review the terms of the lease with the selected applicants to make sure they understand all conditions before signing.

9. Conduct a "walk-through" of the property with tenants on the day they move into your home and have them initial a "property-condition report" that verifies the current condition of the property.

Tips & Warnings

• A property-condition report, available at most office supply stores, will help avoid disputes over property damage and refunds of security deposits.

• Consult a tax advisor about the tax consequences of renting out your home.

• Landlord-tenant laws can be confusing and complex. When in doubt, consult a local attorney.