Even though the rental property is a risky investment, it is one of the most stable assets you can own. Despite the benefits of owning a rental unit, managing a business requires a great deal of effort. Many investors in this situation outsource this time-consuming task to a realtor rather than doing it themselves.
Whether you’ve just invested in a new property or are deciding to turn your house into a rental home, this guide will help you with tips to know before deciding to give your house for rent in Epping:
1) Get your Home in Shape: You should ensure that everything in your house is in good working order before you list it for rent. Make sure that all appliances, power outlets, and water outlets work properly, and paint your home if needed. The house may need basic utilities like cupboards, stoves, fans, and light fixtures for a completely bare house. The more appealing your home is, the easier it will be to find tenants.
2) Set a Rent: Setting a very high rent may be tempting, but it will only make it harder for you to find a tenant. While your rent should be competitive, you shouldn’t undervalue your property simultaneously. Generally, your house rent should be between 2.5 and 3% of its capital value. There is no definite value for this; it also depends on the location, amenities, and other factors. Look at the average rent for similar properties in your area, and you can also charge higher amounts if you have premium furnishings or fittings in your home.
3) Estimate the Tax: After renting out your house, the tax implications will be different. The income tax department treats rent received as income and taxes it accordingly. While the imposable tax on rental income, other allied matters, such as mortgage payments, maintenance expenses, etc., are also taken into account. Whatever the case may be, you should be informed about this matter and consult with a tax expert if necessary.
4) Screen Potential Tenants: Renting a house for the first time requires screening potential tenants. Finding responsible tenants will also prevent expensive and time-consuming evictions. Find out who the prospective tenants are, where they work, and why they are moving. Make sure you check their criminal history, eviction history, and credit report. These background checks will give you a better understanding of how responsible a potential tenant has been in the past.
5) Using a Realtor to Fill Rental Vacancies: It doesn’t matter how good your rental property is if no one knows about it. To avoid long vacancy periods, which are costly, a good marketing plan is essential. When you rent a property through a real estate agent, you have access to connections and resources that will make the process easier. Realtors with extensive experience typically have a deep understanding of the rental market in an area.
Bottom Line:
Renting out your property can be a good source of income; however, if you are renting out a house for the first time, you must constantly learn and adapt to be successful.
To learn more about lending your house for rent in Epping, get in touch with SKAD Real Estate, an expert in residential sales & rentals using insight, marketing, and creative ideas to stay ahead of the competition.
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