Are you considering renting out your house? Maybe you have a different investment property that you’re considering renting out for the first time. As you decide to take on the role of landlord, you need to know that you’re going to have lots of new responsibilities as a result.

Naturally, you don’t want to go through this in a sink or swim way because a rental property is a horrible place to sink. That’s why you’re here now. You want to know how to successfully rent out your home in a way that will be easier on you and better for your lifestyle.

Before Becoming A Landlord

When it comes to how to rent out a house, there are several things you need to know before you take the plunge to become a landlord. Let’s say that you’ve already decided that you’re going to do it, but you’re still unsure. Ask yourself these questions to be as prepared as possible for this journey into real estate investment.

If you’re going to embrace being a landlord, the ideal situation means that you’re going to live fairly close to the home you’re renting out. There’s a good reason for this, especially when you get that phone call at 3 am saying that the heater went out in the dead of winter.

You’re also going to want to live close by so you can monitor the property. That means checking on the unit regularly to see if any repairs need to be made and to ensure everything is in working order. Just remember, let your tenants know before you show up at the front door. You may own it, but they live there, so be sure to show them some respect.

For those of you that are not close by your rental property, you need to ensure you have a property management company available for your tenants to reach out to when there are issues. The company would be responsible for all of the things a landlord would normally do when you can’t be there.

What Is The Law Of The Land?

Do you know what the landlord-tenant laws for your state or region say when it comes to how to rent out a house? It’s a good idea to make sure you know what you can legally request, so you don’t overstep your bounds. That means that you need to do your homework because if you ask for a nonrefundable deposit and it’s illegal, you could land yourself in hot water.

The laws also cover things like property access, the required amount of time for eviction notices, and security deposits. Laws don’t stop there. They extend to the federal level, and you need to be aware of those laws, too.

There are anti-discrimination laws that are so much more than being against racism or sexism. Landlords are often unaware of these laws, or if they do, they tend to ignore them. They assume that as long as they’re not racist or sexist, it’s not a big deal. Fair-housing laws exist for a reason, so make sure you are acquainted with them to keep that from coming back to bite you.

Where To Find Tenants

There are plenty of places to find potential tenants. You can post ads in online classifieds or simply spread the word. Thanks to social media platforms, you can probably even find a tenant using that as your preferred method when it comes to how to rent out a house.

To help you sort through the tenants, have them fill out an application as part of the process. It should ask for basic information like their name, previous landlords or other references, as well as their employer’s contact information and salary.

Having all of this information gets you started on the screening process. You don’t want to approve a tenant based purely on a piece of paper, but it is enough to get the ball rolling on how to rent out a house. If references don’t speak well of the tenant, you may want to put them in the discard pile instead of continuing forward.

You might think that’s an obvious thing, but if you don’t take the time to screen your potential tenants properly, you may be setting yourself up for some major problems. That means you need to do a background check as well as a credit check.

These types of checks are easy to do online and are a critical part of the approval process. Don’t forget the human element, though, because there are exceptions to every rule. As an example, you may have a rental property that a family wants to rent, but the couple’s credit scores are really low.

At first glance, you might think, nope, that’s a bad idea. Here’s the thing about that. It is entirely possible that the low credit score could be a result of someone having lost a job and therefore losing income. That’s a quick way to send someone’s credit score way downhill faster than the speed of light.

If that same person finally has a solid job, it is possible that they could be fantastic candidates for becoming tenants in your rental property. With that said, don’t neglect to call references and do a complete interview to get to know the person that will be living on your property 

Decide How Much Rent To Charge

You don’t want to overcharge because if you do, you’re probably not going to get much in the way of tenant applications. You also don’t want to undercharge because you have your own financial obligations to take care of.

The best way to decide how much rent to charge is going to be to consider the mortgage payment if there is a mortgage. In an ideal situation, you should also tack on an extra hundred or two hundred dollars to create a positive cash flow, so you have some extra money to put away in case of emergencies.

Don’t Forget To Check Comparables

You’ll also want to check with whatever is available in your market for rentals. You may find rents that are lower or higher depending on what is out there, but the rent for your property should reflect comparable costs. If you owe more on the house than it is worth, you may end up having to ask for a lesser amount than what would cover the mortgage to have any hope of renting out the property.

Once you decide what your rent is going to be, you need to know how that applies to your potential tenants. Do you expect them to make double or triple the amount? What will you do to ensure your tenants pay the rent on time every month? What will the consequences be if they don’t?

Be Willing To Enforce Timely Rent Payments

Paying rent on time seems like something that makes you scratch your head about why we’re saying this, but it’s a real thing. It means that you need to keep your relationship with your tenants entirely professional.

Even if you’re the type of person that likes to be friendly with everyone, you really should draw the line with tenants. Getting too close can result in letting them slide on their rent until you realize that they are several months behind.

Letting payments slide will hurt you if you are paying on a mortgage with the rent payment. It is going to leave you struggling to make the mortgage payments and putting you in potential financial turmoil. You don’t want that, so you want to be firm with your tenants while still maintaining a respectful attitude towards them.

Remember, having a good, professional relationship with your tenants is going to go a long way to making sure you receive the rent check on time every single month. It will also make life easier for you when you get those calls at odd hours to check on things that break.

Consider Customizing The Lease

You can go forward with a lease in one of two ways. You can pick a standard lease to use, or you can customize the lease to include the terms you want. A standard lease can be found on legal sites if you don’t have a lawyer available to create one for you.

A word of warning when it comes to choosing standard leases – they may not be entirely suitable for your state’s laws. For that reason, you’re going to want to find a lawyer that is at least willing to go through the document to make sure it is legally binding.

Customizing a lease can also be done and is usually a better option for most people. That does require a real estate attorney to help you with the document, but once it’s done, you’re ready to go. Customization includes things such as allowed pets, what types of pets, and any other rules or regulations that need to be followed like leash laws.

Not only does the lease tell your tenant what to expect, but it also protects you as a landlord. Your lease should comply with all of the necessary laws in your area to limit your own liability. Inside of a lease, you’re also going to explain who is responsible for the various areas of the house.

Are you responsible for fixing an issue with the house? Is the tenant responsible? What about regular maintenance like mowing the lawn? Who is supposed to take care of that? Are there any other rules about smoking or noise levels?

By having details spelled out in a lease, you and your tenant know where responsibility falls. It also allows the tenant to have a plumbing issue fixed even if you’re not there. Of course, if you do allow your tenants to take care of issues without prior approval, you’re probably going to want to include a clause that limits the amount you’re willing to spend.

Eviction terms also give you an out if the tenant is not paying rent on time or causing problems in the home that go against pre-determined regulations. It’s a real problem that some landlords can face, so having everything in a written lease agreement makes life easier for everyone.

Remember Property Insurance

There are multiple types of insurance available, and you’re going to have to get the correct insurance that covers your rental property. Rental properties don’t get the same insurance as a house that you’re living in and claiming as a primary residence.

Rental insurance is not the same as home owner’s insurance. Instead, rental insurance is meant to cover the structure, any medical expenses associated with damages to the tenants while they live there, legal costs if any legal procedures are required, and the loss of the income should the property be in need of repairs.

As the landlord, it is important to note that you are not responsible for the tenant’s belongings. What happens to them is not anything you need to concern yourself with. It would be good business, though, to mention that to the tenant and encourage getting renter’s insurance. That kind of insurance will cover them if they need it.

Be Ready To Conduct An Eviction Process

Evictions happen in almost every landlord’s life because, at some point, you will have that tenant that is going to force your hand. You don’t want to kick someone out because it will make their life harder, but at the same time, you don’t want to put your income in jeopardy either.

It’s a tough situation to be in for sure. When it happens, and it will, you’ll need a licensed real estate attorney to get the process started. You can’t just waltz into your rental property and forcibly kick them to the curb. It doesn’t work that way.

Eviction is a legal process that requires you to complete a court filing and have law enforcement accompany you to remove the tenant. Only a law enforcement officer can actually physically force someone else out of your property if they don’t want to leave.

The process also isn’t cheap. Evictions can cost several hundred dollars at a minimum and may end up costing much more. At the very least, it’s another reason you want to create a positive cash flow so you can cover these expenses should they come up.

Consider A Property Management Company

If you would prefer to have a hands-off approach with the property and the tenant, then you may want to consider a property management company. Going this route means that the company will be responsible for providing the services you would normally handle.

Management typically includes everything from finding the tenant to managing problems that crop up with the property. They will be responsible for collecting monthly rent and late fees as well as dealing with things like evictions. There is a given emotional distance which is important in maintaining a business relationship.

You don’t want to go with just any company to manage your property. What you do want is a company that is licensed to act as a property manager. You can check with your local real estate agent or with the National Association of Residential Property Managers.

Learning How To Rent Out A House

There is a learning curve, but you can do it successfully with the right mindset. If you want to have an active role with your property and your tenants, then a landlord may be exactly what you want to do. On the other hand, if you want to be less involved, a property management company may be a better choice.

Remember to put funds away if and when you can so you can pull them out for that inevitable rainy day. Whatever you decide to do, you’re going to want to be properly prepared to go forward with any other costs that will come from your rental once you decide to rent your house out.

You’ve started looking into what it takes to buy a home, but you’re not sure about the nitty-gritty details. That’s when you start trying to figure out what questions to ask when buying a house.

What Questions To Ask When Buying A House?

There is some specific information you shouldn’t bypass to keep you feeling in control to know you’re making the right decision when you find the house you want. Ask questions, get answers, and ideally, you’re going to end up with the right house for the right price, too.

This question is an important one to ask because looks can be deceiving. What if the previous owners had painted over a water damaged wall instead of taking care of the problems and only did it to make it look good? What if there was mold under a perfectly plastered wall because they didn’t take care of the issue?

Those things happen, and they’re painful to fix after the fact. Because of that, it’s good to know the history of the house. You always want to request what is called the Comprehensive Loss Underwriting Exchange report because it contains any and all claims that may have been filed.

Couple that with a quality home inspection and you’re going to be better off getting the whole picture of what comes with the house. Of course, if it’s a brand new home, you shouldn’t have the mold issue to worry about, but still, don’t skimp on the 

This is among the trickier questions to ask when buying a house. You may get approved for a higher amount than you can comfortably afford, so this becomes a case of just-because-you-can-doesn’t-mean-you-should. 

If you haven’t been pre-approved before looking, then chances are you don’t know what you can afford. There’s nothing wrong with not knowing as it is a common misconception among potential home buyers.

On the other hand, if you do know what you’ve been pre-approved for, then you also need to consider any other payments that may pop up as a result of buying a home. Examples include possible renovations or installation of flooring that you weren’t planning to do.

Appliances can also impact affordability. Consider whether or not you want to or need to purchase appliances when you buy a house. If you include them in your budget, then you’ll be ready to handle the expenses even if they are unexpected.

To be fiscally or financially prepared, you need to know if you can close on the home of your choice. That’s where getting pre-approved on a home purchase along with having good credit becomes critical to finalizing your decision.

A preapproval shows both you and the seller that you’re serious about buying a home and that you have the financial capacity to handle a house payment. A credit score is especially important, too, in getting pre-approved because specific issues on your credit can automatically disqualify you for a mortgage.

When in doubt, one of the first things you do is to get your credit report in order. That means checking for anything that could impact your credit like debt collections or other outstanding issues.

Knowing how much to offer may be a little more than a guessing game. If you don’t offer enough, you could very well lose the house to another offer. If you offer too much, then you may pay more than you needed to purchase the home.

You'll need the experience and expertise of your real estate agent when you're trying to figure out how much to offer. Your agent should be able to tell you the selling prices that other homes in the neighborhood are going for. You’ll want to compare homes that are similar, look at their lower and higher market values, and come up with a comparable offer.

Pricing the home correctly will give you a better chance at having your offer accepted. It also gives you the opportunity to be prepared to counteroffer if necessary. Having someone guide you through the process will help, so you know when to make an offer or to keep looking.

Depending on how competitive the market is, you may have to get creative on how to make your offer stand out. That can include writing a personal letter or note to the seller that talks about why you want the home. Maybe you’re a grandmotherly type that wants to live in the same neighborhood as the grandkids. Telling the seller your story might be what tips acceptance in your favor.

If the market is extremely competitive, it’s not unheard of to include hard-to-get tickets to a game or show as part of the offer. Some potential buyers will even wine and dine the sellers in order to attempt to gain their favor. 

Do keep in mind, though, that in some cases, actions like these may very well turn off your seller, so use your judgment wisely and consider your audience. You’ll also want to check the law because in some cases, doing this can also be illegal in some places.

The answer to this is pretty much a no. While there are templates online that are supposed to make the offer process easier, it’s really not the best way to move forward. Remember, there are area-specific laws that are made to guide the entire process, and those forms don’t always take that into consideration.

Once an offer is accepted, the seller is legally bound to follow through with the acceptance as long as all applicable laws are followed. It’s also important to know that in many states the law says that you have to work with a lawyer to complete the paperwork.

From a legal standpoint, you’ll fare much better if you use someone that is knowledgeable in real estate transactions. Having a good real estate agent can ensure that you have access to everyone and everything you need.

There are several different options when it comes to picking which mortgage is right for you, but to pick your best choice, you need to know the jargon, so it makes sense when you hear it. Since everything can be so overwhelming, it helps if you at least have a loan officer that can navigate the rough waters for you.

There is a lot of information to take in and understand from terms, rates, and various other types of mortgages like the ones available from the VA or for first-time home buyers. It’s enough to make your head spin.

With all of that said, make sure you have a loan officer that knows all of this information. Do some research and find one that can give you the best information, so you end up picking the best mortgage with the lowest payment. It can mean the difference of thousands of dollars in savings for you.

First off, closing is the time that you meet with brokers, realtors, and anyone else involved to sign the paperwork, saying that you are buying the house. When you sign the paperwork, you’re also committing to how the other associated costs are going to be paid by either the seller or buyer.

As an example, there are sometimes attorney fees that need to be paid at the close of a deal. There are also fees or commissions that must be paid to the realtor for the job they did in helping you find the home.

Don’t forget title insurance or mortgage insurance as required. Keep in mind that, in most instances, if you put down less than 20% of the total cost of your mortgage loan, you’ll have to purchase mortgage insurance which is also due at closing.

A Few Final Thoughts and Questions

There are several other questions to ask when buying a house, but they’re a little more outside-the-box as opposed to the ones previously presented. Ask if there are pets buried in the backyard, so you don’t find unpleasant surprises. 

You may also want to ask if the house is haunted or was home to a murder or suicide which can lower the property cost. It isn’t required to disclose something like that, so asking may be the only way to find out.

Don’t forget to request warranty documentation along with any other paperwork about infestations or water damage, too. Once you ask all the questions and get answers, you’ll feel great knowing that you have all of the information you possibly need to make the right decisions when buying a house.