Figure Out The Answers To These Questions Before You Rent Your House
Being a landlord of a rented house requires you to wear many different hats, including emergency repair person and financial negotiator. Renting a house to tenants, however, can be a money-making business that improves your financial standing with minimal headaches. In order to avoid some of the hassles that can arise when you're a landlord, it's a good idea to come up with a solid list of rules before you seek your first tenants. To compile this list, it's useful to ask yourself some questions. Here are some suggestions.
How Late Will I Accept Rent?
It's a standard practice to have your tenants pay rent on the first day of each month. Ideally, any tenants you have will abide by this rule, but there may occasionally be times that you have a tenant who struggles to meet this deadline. Many landlords will have a grace period — for example, they'll accept the rent check up to the third of the month without a penalty. Then, afterward, they'll charge a set amount of interest for late checks. You need to decide what your policy will be. This will allow you to be perfectly clear with your tenants and give you grounds to evict in the worst-case scenario.
How Many People Can Live In The House?
When you rent your house, you'll find out how many people will be living in the residence when you approve your tenants. For example, the family might include two parents and three children. It's a good idea to create a rule that prohibits additional people from living in the house without your approval. While it's acceptable for guests to stay overnight on occasion, you don't want your tenants recruiting additional people to live in the residence to share the rent.
Who Will Be My Backup Emergency Contact?
When your tenants face a problem with the house, they'll likely get in touch with you right away. However, if you're occasionally unreachable or take frequent trips out of the state, it's ideal if you have a backup emergency contact. You'll want to consider your circle of friends and family to identify someone who is highly trustworthy and dependable, as well as someone who can make sound decisions in your absence. For example, if there's a plumbing problem when you're away on vacation, you need to trust that your tenants can reach this emergency contact and that he or she can hire the appropriate contractor to fix the problem in a timely manner.