Did you know that approximately 109 million Americans live in rental housing? If you want to become a landlord, this large pool of renters shows promising potential.
Rental income can be a passive flow of money. Or depending on your earnings, it can even replace full-time salaries. You may have a house or home that can transform into a rental property and you are ready to start making that extra money today.
But how can you lease property? Before you envision a full bank account, there are some important rental considerations. You’ll need to know housing costs and local legislation before becoming a landlord. It takes work to market your rental property, and attract responsible tenants.
While the rental reward is high, are you ready to take on these responsibilities? Here is what you need to know to lease your house or apartment. These tips can help you earn extra income.
Know Your Costs
Do you have a home mortgage? Are you paying off renovation or credit card debt?
You may think rental income can alleviate these costs. Or, having tenants should help you earn extra money. Before renting your property, it’s crucial that you know your homeowner’s costs.
A standard monthly budget template can help you. By knowing what it takes to actually run your home each month, you’ll know what rental fees you will need to be profitable. You should consider what additional costs you may need to cover.
For example, renters can break or damage your property. While insurance can sometimes cover these claims, are you prepared to fix issues in case of zero reimbursements?
If you’re renting an apartment or home you already live in, where will you go? You need to determine if you have the extra space or budget to find a new home when renters are around.
There May Be Loss
Or, if you are buying a property with specific rental intentions, are you prepared for vacancies or potential losses? Because of COVID-19 travel restrictions, tourism has slowed down.
Or, if you are dependent on summer rentals but the season is slow, what will you do? If you can float the property without rental income, that’s great news. If not, you’ll need to reassess the purchase or rental opportunity.
Is it Legal?
Can you legally rent out the property? Many homeowners think renting property is as simple as a tenant signing a lease.
But, you need to check the local legislation before renting your home or apartment. For example, some U.S. cities forbid vacation rentals or having tenants.
Skirting these rules can result in major fines. Have a look at what you need to know about rental laws.
Can You Handle The Responsibilities?
Renting property takes hard work and responsibility. You will have to be on call to manage all tenant issues.
These issues can be time-consuming and eat into rental profits. If you have the budget, you can hire maintenance staff to alleviate the rental responsibilities.
But, if you can’t afford extra help, you will need to wear many hats to keep tenants happy. Are you ready to take reservations, fix that broken sink and call the energy company?
Find Your Platform
There are many ways to market your rental. Whether you are looking for a long-term tenant or a short-term guest, understand the different rental platforms.
These platforms often collect a commission or can take a percentage of your sales. You’ll need to calculate this into your rental fees and overall budget. Rental platforms may also require constant attention.
If you don’t confirm a booking within 24 hours or answer renter requests, you could lose the reservation or income. You’ll need to dedicate a lot of time to market on these platforms or find help to do so.
Rent Out Your Apartment
Renting out your apartment can be a great way to earn extra income or pay off your mortgage. Here are creative ideas to help list your property.
Many apartment renters tend to be singles, young couples, or divorcees. These renters appreciate furnishings and the ease of a simple move-in.
By furnishing your apartment, you are a leg up to attract renters and a higher earning potential. Take it a step further and include thoughtful extras like luxury linens or a nice coffee machine. These simple touches can go a long way with your renters.
Use Your Location or Advantageous Amenities
Is there an event going on in your city this summer? Do you have a prime downtown location?
Do you have a community pool or luxury gym? These are unique extras that you can use to market the apartment and earn extra rental income.
Lease Your House and Smartly Use Every Space
Many renters looking for a house want more space or amenities than they might find in an apartment. Large families or groups of friends need extra bedrooms or living areas.
Use every square foot of your home to smartly rent your space. For example, an extra bedroom could function as a home office or yoga studio.
Or, if you live in a warm climate, create an extra outdoor living space on your deck. While these additions may be an initial investment, the rental earning potential long-term will be worth it.
Market Your Community
To rent out your house, you need to think beyond the walls. Sure renters want your property because of its amenities, location, or interior details. But to stand out in the rental market and earn extra, sell tenants your local community.
For example, do you live near a family-friendly park? Is there a charming main street nearby?
Does your neighborhood throw block parties or organize summer cookouts? These are unique selling points.
Looking to Lease Property? Follow These Tips To Earn Cash!
To lease property, you will need to put in the work before you see the cash. But, with an extremely high number of renters, there is a great opportunity to attract tenants and earn extra money.
Remember to first assess your homeowner’s budget. Will it be profitable to rent?
Next, you can choose the right marketing tactic or rental platform to attract your ideal renters. Finally, don’t forget to add extras that will make your property stand out.
Renters today want amenities and thoughtful touches. These small investments can help you earn big. If you found these rental tips helpful, check out our other real estate stories.