HOUSE FOR RENT – THE RIGHT WAY TO GIVE YOUR HOUSE FOR RENT
Giving a house for rent is different from selling one. Once the houses are given out on rent, you are still responsible for your property. Due to this reason, property owners are advised to do proper research, follow an effective procedure and be mindful about their tenants. Many landlords go through unnecessary trouble such as facing constant complaints from neighbors, monthly rental being delayed, tenants involved in criminal activities and more, as a result of renting out their spaces to the wrong people. In order to avoid such annoyance, we recommend you to follow a scrutinized procedure beginning from advertising your property to screening potential tenants.
Questions to ask yourself before you give your house for rent.
- Why do you want to give your house on rent?
Before you simply rent out your house, take a minute to understand why you want to do it. This will give you a clear idea of the type of tenants you wish to have, which part of the house you want to rent out, how to prepare the house and how much you should charge. Some of the reasons could be that,
- You might be having unused space which can be utilized by giving the space on rent
- You live alone and you wish to earn some extra money by utilizing your space,
- You wish to travel to another country for some time,
- You are planning to migrate for work or you might have a vacant house away from the city.
- To what extent should you improve your property?
Making improvements before giving out a space is crucial. However, you should also know when to stop. Keeping the house clean and empty, unless you are giving out with furniture, is mandatory. If you want to obtain a rough idea about the quality of a space when renting it out, observe some of the neighboring rentals or simply ask an experienced person/agent.
How Much Can You Rent your House For?
This can be determined by doing research about the current rental price levels in your region. Property price levels in the same area can be very similar and some of the varying factors could be the size of the property and the facilities you wish to offer tenants. If you don’t have the time to walk outside and observe other rentals, visit a property portal. For example, through Lamudi, you will be able to discover similar properties in the same locations, and compare their price levels instantly.
How Much Should You Charge for a Security Deposit?
A security deposit is charged by the landlord to ensure the tenant adheres to the terms and conditions of the lease. This is also known as an “advance” payment in Sri Lanka and is usually the rental for about 6 to 12 months. This amount is returned to the tenants once the lease period is over or used to repair the house for any damages made by the tenant.
How to find the best tenants?
This is the most important step when renting your property. Having a bad tenant around can cause you detrimental consequences. Therefore, you need to follow a proper procedure when advertising the property and when screening prospective tenants.
Some of the effective ways of advertising your property are through property portals such as Lamudi, Social media groups and through real estate agents.
- Pre-Screening the Tenants
Before meeting prospective tenants set up a criteria which allows you to qualify them over the phone. This reduces the time wasted showing the property to tenants that you dislike. One of the major inconveniences landlords face when screening tenants is that most of the time they don’t show up. As a result of setting a property criteria and mentioning conditions over the phone, you will be able to filter tenants who are not serious about the property. This criteria could include conditions such as monthly income, favorable credit score, favorable tenant history and references. Thereafter, set a specific time and date to show your property.
Encourage your tenants to fill out an application which could include information such as
- Names of all renters
- Date of Birth
- National Identity details
- Phone Number and Cell Phone
- Alternate Phone Number
- Permanent residential address
- Current Employer (name, hire date, income, contact info)
- Past Employer (name, hire date, income, contact info)
- Emergency Contact Information
- Release of Information Statement
- Signature for All Tenants