Renting a home, condominium, or an apartment can be a lucrative method of earning a passive income. However, you will still need to prepare the property for rent. Today, there are about 40 million renters living in the US. As the cost of owning the first home continues to rise, that figure is expected to hit about five or six million in the next ten years. That means there will be a real demand for any rental property you set up today. However, if you want things to work out well, you need to prepare the rental property. Here are a few steps that can help to steer you in the right direction that we have prepared.
1. Begin with an informal inspection
If you are planning to use a property for rent, make an informal walk through the property and take note of any issues that need to be fixed. If there is a tenant already living there, take note of the things that he or she will be responsible for fixing. Compare that to the terms of the lease and find out how much he or she owes you. After that, confirm that final date on which an existing tenant plans to move out so that you can schedule the final inspection.
2. Contact professional services
After the initial inspection, you may find that there are repairs, which require the services of a professional to fix. For instance, the plumbing may need to be overhauled, or the kitchen may need some refurbishing. Contact the professional services and get quotes from them. You want to do this as soon as possible so that they can schedule repairs early on. Some jobs may have to wait until the tenant vacates, but others can be done while he or she is still there. For instance, leaky faucets, loose outlets, and broken doors can be repaired while the tenant is still in the house.
3. Start purchasing supplies
Do not wait until your new tenant arrives for you to begin purchasing supplies. For instance, items like new blinds and light bulbs can be purchased well in advance. Have some space in your garage ready to store any of these items. That way, your new tenant will have a smooth transition into the new home.
4. Work on the curb appeal
Once a potential tenant expresses interest in your property, it is the first thing that they will see. Thus, you should focus on getting optimal curb appeal for the property. Ensure that all aspects of the façade of the home are sorted. Give it a new coat of paint to start with.
You should also invite a landscaping expert to work on your front yard and the backyard. If there are any hedges, ensure they are trimmed. If the property has a wooden fence, you should ensure that it is repaired and in good condition. If there is any rubbish near the house, ensure that it is kept well out of sight.
5. Do an intensive cleanup
After the façade and repairs have been handled, you will now need to do a thorough cleanup. Ensure that the floor, windows, porch, and even the screens are all cleaned. It is especially so if it is the middle of summer and there is a lot of dust everywhere. Dust can make the property look old even when it is in excellent shape. The best way to do this is to invite a cleaning company after the current tenant vacates. They will be able to clean out all nooks and crannies that might otherwise prove appalling to some potential clients.
6. Install new air filters
If duct cleaning and air filter replacement has not happened in a while, now is a good a time as any to have it done. You can either have the HVAC filters replaced with modern ones or just clean them. Besides that, if the HVAC system has not received a tune-up in a while, you might want to consider doing it right now. This will help your new tenant have an easy time even as they move into the rental property.
7. Re-key the locks
Re-keying is important if you had other tenants living in the house before. The last thing you want is someone moving into the new house only to have someone walk in with an old key. It is good for security and gets rid of any anxiety. Look for a trustworthy professional to do the rekeying work for you. The work should not just be for the front door. It should be done for the garage, mailbox, and any other locks within the house.
8. Determine its market value
When the home is ready for rent, you can now start thinking of how much you should earn from it. Compare the price of other properties that are located in the area. You can also do research online to find out the average going rate. You should also know that the market value might depend on the time of year. Check your area to see when rental properties are in high demand. You can then plan to advertise it at that time.
9. Notify the mortgage and insurance companies
If it is a private home, which you plan to put up for rent, you will have to notify your insurance and the mortgage company. The mortgage company has certain legal rights that it needs to protect. You may need to sign a need agreement with them for them to accept your home as a rental property. The insurance policy for your home could also be affected. The insurer may need you to sign new documents if the home is for rent.
10. Decide on how to manage the rental property
One of the best methods for property management in Scottsdale is a property management company. If you choose Keyrenter Premier Management Company, we can help to ensure that rent is always on time. We will also handle all other aspects of managing the property, leaving you with ample time to concentrate on other businesses.