What to Know Before Renting Out Your Space
Thinking of becoming a landlord? These days, it’s become more common to rent out your home whether it’s for days at a time via sites like Airbnb, or for an extended amount of time in order to pay off a mortgage quicker. If you’re considering renting out a room or your entire home, here’s what to know before you embark on this territory of shared spaces.
Get educated on your local housing laws.
Housing laws vary from state to state. Before renting out your room or home, make sure to do your research on your local laws. Housing laws will be able to outline everything you’ll need to know when it comes to being a landlord, from the renting process to the eviction process should things turn sour.
Do some research on your tenant.
Before you start worrying about a sour eviction process, it’s important to do all of the preliminary work it takes before renting out your space. While it’s often easier to trust a family member, friend or friend of a friend, renting out to a stranger will take some extra legwork. All that to say, you should have a background check done on the potential tenant, from credit checks to criminal reports. This way, you’ll be able to have a peace of mind knowing they are in good standing financially and an overall upstanding citizen.
Conduct an interview.
Once you’ve performed a thorough background check on the potential tenant, it’s best to have an in-person interview with them. Just like you would for a job, anyone knows that face-to-face interviews give a more well-rounded representation of someone versus just passing the background check and having a gleaming resume. This is a good time to start talking about your expectations for what you expect from your tenants as far as upkeep goes and how to respect your home in general.
Draw up a contract.
After a background check and interview, it’s time to write up a contract for your new tenant before renting out your space. Contracts are a great way to highlight your expectations in a very detailed way so that were will be no questions, and it will be a point of reference if there are any hiccups down the road. For instance, you might have areas in your home that are off-limits, quiet hours, a pet policy or guidelines for parking as well as how situations will be handled if rules are broken. Of course, you’ll want to include the amount of rent and when you will expect it, etc. The more guidelines you specify in your contract, the less of a headache you’ll have later.