How to Rent Your House - The Complete Step by Step Procedure
Many incidents concerning landlords have evolved over time about expensive evictions. This is high time you become aware of the pivotal reasons why you must not rent out your property. There are chances that you do not have the slightest idea how to rent your house.
However, it would be a fantastic idea to convert your home into a rental property. Maybe you –
- Tried to sell your house but much to your dismay the investment property market is too fragile.
- Thought you just felt that the great income building chances might help you in your financial future in the time to come.
It is a fact that nasty incidents get the utmost attention from the media. Several thousands of landlords rent out houses to have nice tenants. One best aspect is that now you can lessen the problems and your home will prove to be a highly useful and profitable business deal for you.
Now it is high time to embark on your real estate journey by buying your first rental property. This is because being a nice landlord is crucial in making awesome deals.
Norita Investors help you in becoming an ideal landlord and help in managing rental properties for Real Estate investors. We will assist you in everything right from setting rent and how to rent your house to handling evictions.
Is there any need to rent your house out?
Does a question arise in our minds that do we need to rent or sell our home? Here are some reasons why you need to rent out your house. Here’s how.
Your primary home is not usually considered an investment or an asset. When you make the ultimate decision to rent out your home, you change a liability into an asset.
The best aspect here is that you still have reigned on your property while the rental income will help in lowering down your mortgage.
As time passes by, the values of your rental property elevate, and this will help you in consolidating your wealth. There will be a consistent flow of income in case your rent out your house for more than your monthly income. Great! Isn’t it? Well, that is the main objective for all the landlords and we at Norita Investors help you achieve your goal with utmost ease.
The golden time to begin your fabulous investment career with absolutely no extra expenses. The first and foremost step is to rent out your property and this is an effective way for consolidating your wealth. There are several real estate investors who initiate their journey by this method.
They rent out their homes and their objective are to move onto excellent houses. This really is a great way to have passive income when you retire and as a result, you will own several properties by the time you get into the retirement phase. You get a chance in this phase to generate a good sum of money if you happen to sell your house.
How do you find Rental Tenants?
Marketing is a powerful way of attracting tenants to rent your house. Your goal is to get to as many tenants as possible. In that way, you have a huge pool to opt from.
Here are some easy methods for selling your property:
The largest and most powerful source on the internet is the Craiglist. It is the simplest method to find potential tenants. Are you aware of the finest aspect? Craiglist is highly effective and free! Another way is to place your ad on sites such as Zillow, Trulia etc.
Another way is to market your rental with the help of yard signs or indicators. Just place a “For Rent” sign or glow sign in your yard.
At Norita Investors, we make it simple for you to rent your house. All you need to do is contact us at 1-888-848-8399.
The Rental Applicants Pre-screening Criteria
You need to make it a point to always do the pre-screening of an individual before you meet him or her in person. Ask that person probing questions when you receive his or her message or call. Let me tell you that is the best means to set a rental criterion. You must explain the criteria to that person on the phone call. Following is Norita Investors’ criteria for a typical type of rental application process:
The gross monthly must be equal to three times or more than the monthly rent.
There must be a reasonable credit score.
There must be proper proof of your employment and payslips or paystubs of your monthly income
You must gather all the nice references from all your past landlords
You must agree to the criteria set up by the state law that there must be two occupants per bedroom.
When your prospective rental tenant has a conversation with you over the phone you may read this list at that point in time. You may ask them probing questions like asking them if they fulfil the criterion laid down by the state law.
If by any chance they do not give a proper answer to your questions, there is no need to let them rent the home. This would be a complete waste of your time screening them further.
Is there any need to use a property manager?
Do you wish to manage the property yourself or get in touch with a property manager to take care of the above issues? It has been observed that usually, a property manager would charge approximately ten per cent of the monthly rent and an additional 50 per cent of the rent in the first month. This is at the time when a new tenant moves into the property.
A property manager charges you a certain fee and will:
- Help in processing your rental applications
- Sign the rental lease form
- Be collecting the rent per month
- Be advertising to find the new tenants
- Be keeping a proper track of the financials
- Help in scheduling maintenance repairs
- Be issuing legal notices
- Help in enforcement of rental policies
- Assist in filing evictions
- Help in proper understanding of the tenant-landlord laws
Our proactive and helpful property managers at Norita Investors Inc will hasten your rental application process and assist you in all the crucial formalities when you move into a new property.
How much do you need to charge for rent?
You cannot take the decision of how much rent you wish to charge. It is up to the market to decide.
You must ascertain the market rent that is justified for your house by doing extensive research. Your house will rent for a similar amount as other rental properties with the same size, location, and condition. You may begin by looking for some properties in Zillow, Craigslist, and various other platforms.
At Norita Investors, we specialize in providing you with all the crucial data for that property and for similar properties. We search for similar properties in your region and give a proper estimate of the property’s rent that is on the basis of the comps.
Let’s learn what a security deposit is. A security deposit is the actual sum of money that a tenant pays to make sure that they meet the lease terms. Well, you must bear in mind that this is only a deposit and it’s not a fee. When the rental tenant moves out, the money must be returned to him or her. The damages must be deducted from the rental tenant’s amount. This money is usually kept in a different bank account because it needs to be returned.
To your surprise, several of the states in the United States of America, limit the amount you can charge. So, it is pivotal to check to find out whether there are any local limitations.
Process of a Rental Application
You must give an application to each renter who is keen to rent your home. The rental application must have a great deal of information like:
- Birth Date
- Social Security Number
- All the names of the prospective renters
- Phone number
- Alternate phone number
- Past five-year addresses
- Present name, date of hiring, income and contact information of the present employer
- Emergency contact information
- Signature of all rental tenants
- Releasing all information statement
It is of utmost importance that you scan the rental application to make sure the candidates meet the initial criteria set by you.
Carrying out credit checks and background checks
There are different tenant screening sources you can utilize to run a background or credit check on a rental tenant. Surprisingly, there are several property management apps that provide built-in screening tools.
It is up to you to take a decision on what type of background or credit score you will allow. That depends on your location and the real estate market strength.
You need to pay close attention to aspects like:
- Past filing of evictions
- Bad financial history
Income verification and credit history checks
Your rental application must have a signature like the release of information as this will enable you to check on their claims. The rental application must comprise the phone number and name of their present employer. You must have a conversation with the owner, manager, or human resources manager.
Following are the most vital questions to ask:
What is the present income of the renters?
What is the duration of the renters who worked there?
What is the nature of the job – temporary or permanent?
The next thing would be to call their past landlords for five years. It is pivotal that you pre-screen the renters to see in case other addresses appear.
Following are the questions that must be asked when you speak to their past landlords:
What was the duration that the rental tenant rent from you?
You need to ask about their monthly rent.
Was an appropriate notice given by the rental tenant when vacating?
Was the security deposit refunded by the rental tenant?
Do you wish to rent to this rental tenant again?
When do you accept or deny a rental applicant?
It is best to process rental applications on a priority basis. This is done to stop discrimination complaints. You must process each rental application until you find out that the applicant is not able to quality.
If you wish to deny a rental applicant, it is pivotal that you document your reasons as to why you want to deny the renter to avoid discrimination complaints. You must notify the rental tenant by sending him a written notice.
If you find a rental application that meets all the criteria, you can speak to the future tenant and let him know that he is approved.
Rental lease agreements
You can get a state-specific lease agreement from Norita Investors Inc, and it will consist of all the forms for all 50 states.
There are several landlords who opt for a one-year lease to keep their tenants in the rental home for a long duration and this reduces the turnover.
Most of the leases consist of the following information:
- Term length of the lease agreement
- Rental property address
- Rental tenants’ names
- Monthly rental amount
- Rental policies
- Criteria laid down for pets, smoking, utilities etc
- Terms for late fees, penalties, definition
- Landlord-tenant laws
Make sure you go through the lease agreement well ahead of time and highlight all the areas that need a signature or initials. If you happen to meet the rental tenant, make them go through the entire provision mentioned in the lease in a systematic manner. After that ask them to sign as you go. All this will help you in the long run.
Now it is the final step before you hand over the keys to your potential renter and this would be the move-in condition report. This is usually a paper that the tenant signs and it entails the condition of the rental property upon taking possession.
Always make it a point to enable the renter to take ample time walking and exploring the rental property and inspecting it. You must encourage them to jot down notes of the condition of each room. Allow them to take videos or photos of the property before you submit them the keys. Also, ensure that as a landlord it is your sole responsibility to make sure that the monthly rent is paid on time and late fees are charged when required.