Currently, there is a shortage of more than seven million affordable rental homes for low-income people.
Getting into the rental industry can help you make money while benefiting others. If you've got a property sitting vacant, you can rent it out to trustworthy people and make a steady income. If you want to rent out your house, there are several things to know.
Read below to learn some of the basics before you commit to renting your place!
1. Not All Tenants Are the Same
One of the most important things to understand before you rent out your house is that all tenants aren't the same.
Although the majority of tenants won't cause a commotion, not all of them are good. Learning how to identify the good from the bad can protect your investment. You should do background checks before approving tenants to protect yourself and your property.
2. You'll Need Help
Most people need help when they become a landlord, especially if they are also working another job.
Coordinating bookings, responding to tenants, and managing move-ins can quickly become overwhelming. Our Santa Fe Property Management team can help you with these needs. You can optimize your investments and make a profit off of each room or property.
3. Your Location Matters
It's easy to view your properties as valuable assets since you've put your time and money into them.
Unfortunately, if you aren't in an ideal location, it could impact your rental conditions. Take a look at similar properties in your area. You'll need this information before setting a price for rent and creating a contract.
You must have a legitimate and valid contract since landlords must always prepare for the unexpected. A wonderful tenant, however, could turn into a nightmare if they refuse to leave.
4. Treat Rentals Like a Business
You should do your best to treat rental properties like you would a business.
To be profitable, you can't be renting out your place for too low of a price or to friends and family for free. Make sure you have each tenant complete an application to prove they can cover the expenses.
As you would with other businesses, you should develop a plan. A business plan will help you prepare for expansion, manage finances, and build a timeline.
5. Marketing Is a Must
Rental home marketing is a must if you want to find the right tenants and make money.
If no one knows you're house is on the rental market, you won't have a chance to make a profit. Working with a listing agent can help, especially if you want access to photography and legal resources. Nearly 95% of renters start their search online, so you want your place to stand out from the rest!
Rent Out Your House & Make a Profit
Short-term rentals are becoming a popular way to make quick money.
If you can rent out your house to the right tenants, you can increase your income and start saving for the future. Rental income is typically a reliable and safe investment since you get checks from tenants each month.
Make sure you take a look at our referral program to make even more money! PMI Santa Fe Property Management will set you up with the best agents and brokers in the area.
