Thursday, November 21, 2013

5 Tips for Getting the Most Money Out of Renting Your Home

Renting out your home is a great way to earn some extra money and even lower your mortgage payments. Whether you are looking to rent out your home while you are on vacation, or maybe just rent off a wing of your home to a college student, there are plenty of different thing that you can do to get the most money from your rent. Here are five tips that, with a bit of effort, will give you an extremely profitable rental home that is a valuable source of income.

Modernize The Home


Having a home with a modern bathroom and kitchen will not only look more appealing to potential home owners, but it will also justify a higher listing price than your competition. Yes, the home may look great on the outside, but most renters care about what is in the interior. They want a home that not only looks nice, but that will be able to provide them with all the comforts that they might want. Luckily, it doesn't have to take a great deal of money to modernize a home. Consider getting new handles and heads for your showers and sinks in the home. You might also want to consider investing in some new appliances that you can find on sell, or that might even look good but are still cheap.

Offer The Right Rent Amount


When it comes to renting your home, you more than likely will find that a lower rent is often better than nothing. Before you set a price for your home, make sure that you research how much other rental units of similar quality are charging. Sites such as Zillow.com and CraigsList can allow for you to search listings and the different prices that are associated with homes that are going for rent. Kind of like offering free shipping, you might want to offer to pay the utilities for the home or offer specific appliances if you want to charge a higher rent for your home.

Do The Dirty Stuff


No one wants to live in a home that has even the most minor of problems. While you might think that the small drip coming from the sink or the occasional sound of mice behind the walls is no big deal, this can destroy your reputability and it can drive away possible renters. For this reason, every time when you are trying to find a new renter, you should have all of the essential services come into your home and inspect for problems. For example, my local Interstate Pest (http://www.interstatepest.com) advised that leaving out a regular inspection and treatment of the home would render all of my past pest prevention efforts completely useless, since even the smallest lapse can allow for harmful insects and rodents to enter into a home and begin an infestation.

Hire A Management Company


If you don’t have the time, or you simply don’t trust in your abilities to manage your home, then consider renting out a management company to do it for you. They will do all of the work, such as find people to live in your home and keep up whatever work needs to be done. Management companies also come with a larger and more reputable name, and therefore they can ask for more money. The only problem with using a management company is that you will lose a share of the profit that comes from the rent, but this is definitely the perfect option if you don't have time to manage all of the aspects of renting a property.

Screen Your Applicants


Be sure that you are putting the right people in your home. After all, you don’t want to have someone in there that you can’t trust. Before you rent out the home, you should make sure that you have an interview with the applicants. It is also important to run a background check on the people to make sure that there are no problems that you might need to worry about. While these things can take both money and time, this simple step can prevent your home from being trashed or possibly misused.

Renting out your home can sometimes seem like a scary task, however, by following just a few simple hints, you can avoid a lot of common issues. Consider the tips here to make sure you find the right resident and that you can make the most money out of renting your home.


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