There’s a lot to think about before renting out your home. If you decide to do it yourself, you’ll have a lot of factors to consider before you ever advertise your property as available. Some of the most important of those factors include:
How will you choose tenants?
As the landlord, it is your responsibility to advertise your property for rent, take rental applications, vet potential tenants, and finally choose the tenant you wish to rent to. The vetting process requires credit checks, background checks, reference checks, and more. This can be confusing, and expensive, and making a mistake can cost you thousands of dollars.
How much rent will you charge?
Property managers and other rental experts know how to research nearby rentals to determine the optimal rental rate for a property. Charging rent too low or too high can keep qualified, reliable tenants away from your property, making it take much too long to rent your property out.
How will you handle repair and maintenance issues?
Along with routine maintenance on your property, you’ll also be responsible for handling any repairs that may be needed while tenants are living on your property. This can be anything from minor repairs, like a fallen piece of crown molding, or repairs to major home systems, such as a broken-down HVAC unit.
How will the rental income affect your financial situation?
Making some extra cash by renting out your property sounds great, but you need to consider what that extra income will mean for you when tax time rolls around. By receiving rental property income, you are essentially operating your own business and will need to pay appropriate taxes on that income. Consult with a CPA if you have questions about how rental property income will affect you financially.
How will you make sure you’re legally protected?
Once you’ve chosen a tenant, you’ll need to make sure that the agreement you make with them is legally binding. Crafting a sound rental agreement for real estate is incredibly difficult, so we always suggest consulting with an expert when writing up your rental agreement to make sure you’re legally protected.
Let us take the hassle out of property rentals
If you want your southwest Florida properties to be more of passive income than something you have to manage every day, call the property management experts at Douglas Realty Property Management at (239) 542-6906 or contact us online. We know all the ins and outs of the rental industry, so you won’t have to worry about forgetting a detail that derails your entire plan. Find out how rental property can bring you financial freedom with minimal effort with superior property management services from Douglas Realty Property Management.