If you’re thinking of renting out your home and becoming a landlord, there are several things to consider. While renting a home out could bring in some extra income to potentially cover expenses like your mortgage payment and other associated costs with owning a home, you could also experience some hassles along the way. Here’s what to know before renting out your home.
If you’re thinking of renting out your house, you’ll want to research what the going rent is in the area where your home is located to get an idea of what you might be able to charge future tenants. Look at other properties for rent in your area, and determine the comparability to your home in terms of square footage, amenities, and any renovations. Use this research to determine if you could rent your home for more or less than those other listings.
You’ll also want to lay out a budget of expected income from the rent you’ll collect, plus any expenses you will still need to cover. You might choose to have your tenant handle all utilities in their name (which takes the obligation off of you, the homeowner, should any bills go unpaid).
Here are some of the benefits to becoming a landlord:
You can find some resources online with prewritten rental agreements that apply to your particular state, or may want to consider consulting an attorney to make sure you really understand the potential financial and legal repercussions of taking on a tenant. Definitely learn your state’s laws relating to landlords, so that if you do run into issues with future tenants, you know your rights.