Learning how to rent a residential property can be a safe lesson if you begin by contacting a licensed real estate broker and contracting with them to rent your property. Since they are already licensed to sell real estate, they are also insured in case anything happens to properties that they are trying to sell. Their insurance company has plans which they can use to protect a rental property. Real estate brokers who rent residential property for its owner find the tenant, collect the rent, are on call if the tenant has a problem, and can network with services to maintain the property.
Especially if your residential property is going to be offered for short leases as well as long, the services of a real estate broker to rent your place are worth their commission. But, if you want to rent your residential property yourself, you can begin by planning how much rent you would like to get. You should consider what other properties are renting for by finding out how much rent people in your area actually pay. An easy way to learn about rental costs in your area is to pick up a local newspaper and look at the properties for sale, their location, and how much rent is being asked.
Once you determine how much rent you want, you need to decide if you want your tenants to pay for their own utilities. If you plan on adding an estimated guess of what they will be if you paid for their utilities yourself on top of their rent, you can say that all utilities are paid. Paying for a tenant’s utilities has its disadvantages. If your tenants decide to leave without letting you know, you might be left with many unpaid utility bills. On the other hand, if you pay for all utilities, your tenant might appreciate having just one bill to add to his budget. It is sometimes easier to rent residential property if you include utilities in the rental charge.
When you have determined how much rent to charge, who will pay for utilities, and how to advertise your property, you should also look into a legal lease agreement document for your tenants to sign. You might also like to include damage to your property as being their financial obligation, as well as accidents that might occur on your property while there are tenants living in it. Whenever you rent a residential property, you are in essence turning over some rights to your property to your tenants, but not all.