Renting your house out can be a fun and profitable venture. But just like any business endeavor, becoming a landlord carries some risks. You’re entrusting a major asset—your home—to people who you likely don’t know well, and who are not nearly as invested in its maintenance as you are.
You should typically have all adults who will live in the rental unit, including both members of a couple, to sign the lease or rental agreement. Doing this makes everyone who signs responsible for all terms, including the full amount of the rent.
Further, check this list before renting out the property-
1. State of the property
Before you decide to rent your property you must ensure that your property complies with certain minimum standards under the law (e.g. free from damp, in good structural repair, hot and cold water, adequate means of heating and ventilation, appliances in good working order, electrical wiring, gas, pipes in good repair).
If your property looks like it has been well looked after and respected it is likely that your tenants will treat it with respect and at the end of their lease (or tenancy under the Residential Tenancies Act 2004) the property will be in a reasonable good condition.
2. Get your paperwork ready beyond the lease agreement
There are a number of forms you’ll need to have on hand before renting your house out. These include rental applications, credit check authorisation forms, any disclosures your state requires, move in checklists, move out forms, and various notices to tenants.
3. Run a background check
A background check will give you a detailed report of the tenant’s past. Several companies offer investigative services for a fee, and will provide you with an eviction history, criminal history, credit history, and various public records. You can also get their background checked for any criminal records from your local police station.
4. Tenancy deposit scheme
For your peace of mind, your estate agent is able to hold the tenant’s deposit (usually 2 months’ rent), which can be used at the end of the tenancy to pay for any damage to the property. The deposit will be registered with a recognised deposit protection scheme, in accordance with The Housing Act legislation, within 30 days. This will ensure that any disputes between you and your tenant or agent will be easier to resolve.
5. Terminating rental agreements and evictions
Landlords typically must begin terminating a lease by providing written notice, and can generally do so only if the renter has violated the law or the lease agreement. As long as the agreement itself is legal, violations such as failure to pay the rent or keeping a pet despite a no-pets clause are generally grounds for termination. Depending on the circumstances and the state’s laws, a notice of termination may simply inform the tenant they have a limited time to move out or present them a deadline to remedy lease violations, such as paying owed rent.