If you have multiple properties or no one of your family members is not staying in the house built by you. It is best to rent the house to upkeep the property in good condition. This way, you can earn some money and meet other mandatory family expenses.
There is no shortage of people looking for houses for rent, and as a landlord, it is best to give your vacant property on rent. However, before renting your property to people, you should follow specific guidelines so that the best tenants occupy the property.
As landlords look for tenants for their houses for rent, they should follow certain norms and know some details about the tenant. Staying ignorant about the tenant and allowing the tenants to occupy the houses for rent is not a reasonable proposition.
Background Check – It is essential to check the background of the tenant. Life is no simpler these days, and apples and blackberries are not just only fruits. One should always check the background of the tenant before allowing them to stay in rent. It is best to ask for local references and evaluate the credit score of the prospective tenants.This level of background check should be given utmost importance.
Check The Behavior – As a landlord, use your instincts to check the lifestyle and behaviour of the tenant while giving your houses for rent. Observe how they dress, talk, or the condition of their car.
Sign A Formal Agreement – Always enter into a proper contract with the tenant before renting your house. Make sure to mention all the terms and conditions of staying on your property. For example, mention the evacuation method by both the parties and the monthly rent and hike in rent after a specific duration of stay. Having clear-cut terms in writing on the agreement can avoid many legal and social hassles. One can stay relaxed and take proper action if there are any violations of the agreement.
Renting Is Business – It depends on the rent that the income from renting your house is considered as business and one as to pay GST. However, suppose you are renting your home for some commercial activity. In that case, it will be regarded as a business, and you have to pay tax on the income from rent. Therefore, it is best to consult an attorney and have proper knowledge on the subject.
Meeting Unexpected Expenses – Irrespective of you or your tenant stays in your house, it is the landlord who should well maintain the property.. There can be unexpected expenses like fixing roof problems, reinforcing the foundation, and many others. As a landlord, the onus of repairing them will lie on you. So one should have adequate funds in their kitty to meet these expenses, or else the tenant can complain to the competent authority and file a suit.
It is not a good idea to put houses for rent if, as a landlord, you are not staying in them. One can earn some money from their investment renting the property. The property remains in good condition, unlike when they are vacant and locked. Rent your house following the avoid guidelines and earn handsomely.
When it comes to putting houses for rent, it is undoubtedly not an easy task. The overall process could be a serious headache if handled by unprofessionals. In such cases, one needs to keep in mind the points mentioned above. This way, the process to put houses for rent can be fully hassle-free.
Layla Flinn is a Sydney based writer and researcher, a regular contributor at Smooth Decorator blog. She writes about décor, gardening, recycling, ecology and business. She thinks all these topics fall under the self-improvement category. She believes in the power of sharing ideas and communicating via the internet to achieve betterment.
