Thinking of Renting Out Your House? Things to Consider

Renting out your own house offers flexibility to travel, temporarily relocate, or turn your home into a lucrative rental property. Despite all the wins, there are several things to consider before you sign the next lease. Here’s what to do to protect you and your tenant from misunderstandings and unexpected costs.

1. What About Landscaping?

Not all tenants will want to take care of your property, mow the lawn, or trim the bushes. You may want to hire a professional company to take care of it for you and fold it into your rent. Or request that tenants take care of specific items, like mowing the lawn, on a bi-weekly basis. Make sure to state who will take care of other issues like tree limb removal, weeding, edging and spring and fall cleanup.

2. Who Will Tackle Snow Removal?

Snow can quickly turn into a burden for renters and landlords alike. If you’re going to request it from tenants, it may be wise to leave the appropriate equipment in your garage or shed. Before renting out your house, outline who will pay for snow removal and how frequently it will be addressed. Snow is one of those things that is very hard to budget for. It can be quiet costly for the landlord if we have heavy snowfall. Therefore, we suggest that you have that be the tenants responsibility.

3. Who Pays for Water and Sewer?

Water and sewer bills can add up quickly and should be outlined in your lease. In order for the landlord to charge for water and sewer, they must be metered separately. When tenants pay for the water and sewer they need to receive the water and sewer addendum in their lease paperwork. The landlord is also required to make sure that showerheads, faucets and toilets qualify as “water conservation devices” in accordance with the local board of health and the state sanitary code. A plumber can install these devices.

4. Are You Pet Friendly?

Pets can attract more renters but could also make renting out your house a headache. What types of pets will you allow? Some landlords only accept cats or dogs under a specific weight category.

Tenants are limited on the rental inventory that will accept a pet. Therefore, as a landlord you can receive more rent. Usually it is about $100 a month more for a cat and $200 more a month for a dog. You cannot ask for a pet deposit, however, we recommend always requiring a security deposit when you accept a pet.

5. What About the Legalese?

Consider what type of arrangement you’ll have with your tenants and the terms. A lease can be mutually beneficial for both parties and lock in a set period like 6 to 12 months. If you’re looking for something more flexible, a tenant-at-will contract can be terminated at any time by either you or the renter.

6. Will You Require a Security Deposit?

Make sure to protect yourself financially before renting out your house. Security deposits can be crucial to recouping costs for damaged property. Most landlords require one month’s rent as a security deposit. Renting out your own house can benefit your lifestyle and bank account with the right strategy in place. Consider each angle as the landlord and the tenant to lay the groundwork for a successful experience.