House Rental Tips
It’s going to be a strong rental market in 2023, similar to 2022.
Yet, that doesn’t mean landlords will be getting fair value for their listings. With rent controls plaguing the industry, operating costs and inflation eating profits, and fewer high quality tenants, landlords might be accepting less for their valuable properties.
Rent prices are levelling off yet costs keep rising, including rising taxation. So, the easy profits of 2022 might be fading into history.
Before you race to get your rental house live and profit generating, review the basics of how this rental is going to make a profit.
There’s 5 Basic Preparation Questions:
- Is it rentable, at what price, and how will you ensure consistent profitability?
- How much will this cost to renovate and occupy (maintenance)?
- What is the projected rent income and profit margin?
- Will local rental housing laws pose serious liabilities?
- Who will manage your property (you with software)?
With these 5 questions answered (i.e, revenues vs costs), you can dig deeper into the opportunity.
12 More Preliminaries
The home rental planning process can be fairly simple. Continuous questions help you ensure you can meet each challenge as it appears. You will be confronting new profit-eating challenges each month.
Let’s list the steps in a series of questions:
- does your local building codes/bylaws allow for apartments in your house?
- how many units can your property be safely divided into?
- what will the renovation costs, extra taxes, fees, and maintenance costs be?
- what features will be needed to make it rentable (sound insulation, heating/cooling, flooring, bathroom fixtures, etc) ?
- how many appliances, fixtures, and entry doors will be needed?
- how many parking spots will you need?
- what will the electrical/plumbing upgrades cost?
- how will you advertise and screen tenants?
- how much rent will you have to charge to break even?
- can you write a lease that will protect you legally and allow you to evict them if necessary?
- how much insurance will you need with this extra tenant?
- which property management software will make bookkeeping, administration, and accounting a breeze?
You’ll want to learn more about your city and state landlord tenant laws, fair housing act, and lease agreements. That’s the legal side of it. Want to know more? Check out our property manager specialist’s tips on lease management, lease terminations, tenant evictions, and legal documentation.
Renting and Managing
- establish your best rent price allowing you a sustainable profit against likely rising costs
- if you need to advertise to attract a renter, describe your rental unit features, which will be listed in your vacancy ad
- decide on the damage deposit (if relevant) amount
- advertise your unit using a high-quality advertising syndication
- accept applications online, do background checks, and use a fair tenant election procedure that meets fair housing regulations
- choose, then onboard the tenant professionally (they will respect you for being professional and courteous)
- set up online rent payments with their bank account
- issue keys after they sign the rental lease and provide their security deposit
- set them up on your platform’s platform so they can review their documents and contact you directly
- conduct your ongoing bookkeeping and accounting to keep on top of your finances
Becoming a landlord might offer more benefits than you ever imagined. It’s a golden opportunity that comes with legal responsibilities, financial strategy, and landlord management demands.
If you’re about to make it come true, get some guidance from someone who is already managing a house rental. Check off all the details you need to know about.
Good luck with your plan and the investment.
See also: Property Management Software | House Renovation | Apartment Renovation | Housing Market Outlook | Single House Rentals | Apartment Rentals | Property Management | Best Property Management Software | Online Rent Payment | Property Management Trends | Property Maintenance Tips | California Housing Market | Apartment Rental Prices | ManageCasa Review | Property Management Companies