If you have an in-law apartment that you’re considering renting out, or maybe you’ve bought a new home and are thinking about renting your current one out. Whichever the case, becoming a landlord is a big decision. If you’re just starting to throw around the idea, here are a few key things to think about:

Define Your Requirements

Start by familiarizing yourself with the legal and tax requirements of renting out a space (or an entire home). If you only plan to rent out a portion of your home, you should verify that it’s a legal apartment for you to rent. Make sure you’ve done your due diligence early on in the process, so that you can address any challenges before getting too far into the process.

Know Your Budget for Updates

If you’re planning to rent out a space for the first time, you’ll probably want to give it an update. This could be anything from a fresh coat of paint and an extensive cleaning — to a complete overhaul. Whatever your situation, set a budget and stick to it. If your budget is minimal, just map out what you can afford and prioritize whatever is most important. If you’re planning a larger renovation, think about your timeline as well as your budget, so that you can start renting when you want to.

Have a Written Lease

It’s wise to always use a written lease. Some landlords write their own leases while others use templates. You might find that you start with a template and modify it to meet your needs. Even if you’ll only be renting month-to-month, it’s still wise to have all your paperwork in order to protect yourself.

Screen Potential Renters

When it’s time to find your tenant, it’s important to take the time to screen your applicants thoroughly. Many landlords check credit scores, run a background check, and contact references. It can seem like a lot of leg work, but it’s worth it in the long run to have a renter that you feel confident with.

 

If you’d like to talk more about renting out your home, or if there’s another matter I can be of assistance with, please get in touch — I’m always happy to help.