What Do I Need To Know Before Renting My House?
If you're a homeowner, there may be a time where you need to rent out your home for career reasons or to gain some extra cash flow. If you are going to rent out your house, here are some quick tips you need to know:
Get an Insurance Policy.
Before you rent out your home, you will need to get an insurance policy known as rental property insurance. This will protect you from damage that your tenants will do to your home while living there. You will also be protected from legal actions that your tenants may pursue against you. However, if your tenants want to ensure their personal property is protected, they will need to purchase their own renter's insurance.
Hire an Accountant.
If you are renting your house, you will have a great deal of tax implications that you will have to handle. Hire an accountant so you can make sure you are recording everything correctly and figure out how to file your taxes. Your accountant will also be able to help you choose the correct depreciation strategy for your home.
Hire a Lawyer.
You will need to give your tenants a lease agreement, so it's wise to hire a lawyer to help you draft this. The lawyer can help you define the specifics such as how many people can be in the house at one time and what will happen if the rules are not followed.
Figure Out the Criteria for Tenants.
You will need to abide by the Fair Housing Act guidelines in order to determine who your tenants will be. You will need to place your requirements on paper so the tenants can sign and agree to the terms. You can ask for the income and credit scores of potential tenants.
Finish Your Paperwork.
You will need to finish other paperwork for your tenants to fill out that include: credit check forms, move out forms, move-in checklists, state disclosures and rental applications.
Have a Home Inspection.
You need to have your home inspected before the new tenants move in to your home. This will prevent your tenants from having to deal with home maintenance issues and will let you know which issues were present before and after your tenants lived in the home.