Essential Tips for Homeowners Renting Out Their Property

Key Strategies for Homeowners Leasing Their Property

The housing market is currently sluggish, making renting out your property a smarter choice than selling in today's low-demand climate. Leasing your home can help cover your mortgage costs and generate extra income, making it a beneficial option for owners.

First, notify USAA about your rental plans and familiarize yourself with property management basics to avoid common pitfalls. Statistics reveal that nearly 20% of renters find homes directly online, preferring owner-listed properties over other sources.

Before listing your property, consider these essential tips:

Screen your potential tenants carefully by spreading the word locally and requesting applicants to fill out a form providing personal and employment details. Obtain their Social Security Number and signed authorization for credit checks, which should include credit reports, criminal background, and references.

If needed, hire professional agencies to assist with tenant screening for a nominal fee, ensuring you select the most reliable renters.

Research rental market rates in your area to set a competitive price. A fair rental rate attracts tenants seeking owner-listed properties, giving you an edge in the rental market.

Draft a comprehensive lease agreement that clearly spells out rights and responsibilities, safeguarding both parties legally.

Secure appropriate insurance coverage for your property before leasing it out. Although owner rentals are often flexible, insurance provides protection against damages and other unforeseen issues.

Consider engaging a property management company to streamline operations. Professional management can help you find quality tenants and handle day-to-day responsibilities, reducing your stress and ensuring a smooth rental process.