7 Ways to Prepare Your Property Before Renting It Out

Renting property is a good way to bring in passive income. Like any financial endeavor, it does take preparation and planning. The 7-step process below can serve as a useful checklist to make sure you cover the essentials to better protect your property, your legal standing and tenants.

Do not, do not, do not presume spoken words without documentation have legal worth in a court of law. The entire process must be dutifully and accurately recorded in case legal issues come up.

Step 1: Review Landlord /Tenant Legalities

If you have never rented property before, speak with an attorney who has court experience with landlord/tenant disputes. Review landlord responsibilities and your legal process rights. Make sure you thoroughly understand tenant rights and the landlord’s obligation to protect them

For instance, depending upon the area of the country you live in, you may be surprised to learn some of the complications of the eviction process.

More and more, courts are disposed to give better protection to the delinquent tenant than to the owner. The amount of time the renter may occupy your property pursuant to having to vacate the premises is shocking to new landlords.

Likewise, there are substantial limitations upon collecting past due rent. If a tenant has been evicted and left no forwarding address or made payment arrangements, the landlord likely looses the rent owed him. Cover the legal bases first.

Step 2: Inspect and Document Property Condition

Thoroughly inspect your property, preferably with a reliable witness. Video record or take good, clear pictures with time and date stamps. Create a file on your computer or phone to store this inspection information.

Renting property is a good way to bring in passive income.

Inspect the main structure and any other out buildings like barns or storage sheds on the property. Make notes of needed repairs. Plan to document all repairs as you make them. Create a list of the most urgent and complete these first.

Step 3: Clean Up the Yard and Mow the Grass

Visually inspect the yard and remove all trash and debris. Be sure to remove any metal objects and any other hard objects that can cause potential injury. For instance, do not leave any old swing sets or trampolines and other structures.

Trim all shrubbery, remove clippings, and trim all trees of low hanging limbs so they can be walked under freely.

Clean and Paint Exterior and Interior

Use a pressure washer and recommended cleaner to clean the entire rental structure. Start with the carport or garage, porches and decks since they usually take the longest to dry. Be sure to squeegee away all the water you can to decrease drying time.

Remove window screens so you can clean the window exteriors as you are pressure washing the eaves and overhangs. Carefully inspect the paint finish to determine if it needs painting. If it does need painting, schedule a time to sand, prime and re-paint it yourself or hire it done.

Inside, go over each room inspecting the doors, walls, flooring and windows. Clean each room thoroughly. Repaint as needed before renting the house. Repair or replace any damaged flooring. Repair or replace any faulty doors as needed.

Step 4: Complete All Necessary Repairs Noted in Step 2

Check every interior and exterior water faucet, commode, tub and shower for leaks. Check all the outside faucets. Go under the house and inspect for signs of leaks. Record the fact that none were found, or that all necessary repairs were made.

Likewise, go into the attic and check the underside of the roof for any leaks. Repair all you find. Keep all receipts for material purchases and labor costs as proof of your repairs.

Lastly, have the HVAC and heating system checked to confirm it is in good working order. Again, keep your receipt from the technician.

Step 5: Confirm Insurance Coverage

Make sure with your insurance agent that you have the proper coverage for rental of the property. You need to make sure you are covered in case of fire or other weather disaster, and that your protection covers landlord/tenant contingencies including potential lawsuits which may arise out of the rental

Step 6: Have Attorney Prepare Lease Agreement

Unless you have legal training or already have a rental/lease agreement drawn up, consult your attorney to prepare one. This is the one piece of legal paperwork that is most critical for your protection. It tells the potential tenant specifically what is required to remain in good standing during the lease

This document must spell out precisely the financial terms. It should include amount of rent, when it is due, and the financial consequences up to eviction for not abiding by the terms.

The agreement should also list tenant upkeep responsibilities and landlord responsibilities. It should also state any amenities included in the rent fee like yard care, utilities, trash pickup and other relevant particulars. Again, this is the critical, document upon which your legal protections are based. It has to be sufficient.

These last six steps have been all about preparing the property and making it presentable, but also to cover your potential legal issues. Now, it is time to reap the rewards of your due diligence.

Post Your Rental Listing

With all repairs made, a thorough cleaning done, insurance coverage verified and a solid rental agreement prepared, it is now time locate a renter for your property if you do not already have one.

To get the best tenant, think about how to most effectively get word out about your available rental. The choices are basically two: a real estate agent or do it yourself.

If you have the time, and do not mind the process of interviewing prospective tenants, DIY may be the route. On the other hand, if you do not wish to be involved with any of that process, it is wise to let the professionals do it for you.

Simply contact a realtor or property management company, meet them preferably at your rental property, and go from there. Most property management agencies and realtors are willing to work with you to offer whatever degree of help you need.

Some landlords want to take on a more active, involved role, while others, especially owners who live in another city, may elect to forego all personal involvement. One such property management company is Rosebery Raine & Horne Property Management.

 

Tags: passive income, Property management, Rental Property, Renting property

Category: Real Estate