How to Rent Out Your Space

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You've decided you want to rent out your home, now you need to know what steps to take in order to do so. I can't cover in detail all of the important areas to consider when becoming a landlord, so use this article as a guide. Here are ten things you should think about if you are considering renting out your home.

1) Check with your local laws and make sure that you are able to comply with landlord/tenant codes and regulations and have the licenses and permits you require in order to rent out your property.

2) Get your rental space ready for tenants. Make sure that all plumbing, electrical and any appliances are in good working order. The space should be clean, up to code and in a condition that you would expect it to be if you were paying to live there.

3) Decide on how much you will charge your tenants for rent. Take into consideration your mortgage, taxes, utilities, and any maintenance or repairs that may come up. Take a look at other rental properties and make sure you are in line with what they are charging. Will you be managing the rental space or hiring a property manager?

4) Are you renting out the space from month to month or will you be offering a fixed term lease? What will you be asking for in terms of a security deposit? Think about the little details that will be included in the rental agreement such as how much notice you expect when they are moving out and what their responsibilities will be.

5) You will need to have all the paper work in order to rent the space out. This includes a rental agreement or a lease that details what the rights and responsibilities of the tenant and landlord are, tenant application forms, a questionnaire for interviewing potential tenants and a move in/move out checklist for inspections.

6) Now you can start your search for the right tenant. List your property on classifieds, put rent signs up on the lawn, and let friends and family know to spread the word. Be specific with what you want in regards to number of tenants, pets, smokers/non-smokers, etc. Be sure to screen all your applicants carefully by checking references such as previous landlords and employers. Take your time with the interview so you can be sure to get a good idea of what they will be like as tenants.

7) Once you've chosen an appropriate tenant you can meet up to have them fill out and sign the rental agreement and to collect the security deposit. Depending on whether you are renting the space out on a lease or a month to month basis, you will want to have a way of collecting payment. Either set a date to collect payment each month or have the tenant write you postdated cheques.

8) You will also want to take the new tenants on a walk through of the space with your move in checklist and make note of any damage that the tenant is not responsible for. It is also a good idea to take video or pictures of the condition of the space so that it can't be argued at a later date. Both the landlord and the tenant will need to date and sign the document and you should give a copy of both the lease and the move in checklist to the tenant.

9) Make yourself available to get the keys to the tenant on their move in date and be sure to have any repairs they requested during the walk through done in a timely manner. If you don't keep up with the repairs, you will be responsible if they turn into bigger problems down the road.

10) Now that the tenants have moved in, make sure you check up on them and the space regularly; however you should respect their privacy and let them know when you will be entering the unit. They should have your contact information, as well as a way to reach you in the case of an emergency. You should also have a contractor that you can rely on in the event of a repair.

Be sure to take into consideration that no matter how good your screening process is, you may still encounter a bad tenant. Be prepared in the event that you may have to evict them and the costs you may endure having your rental property sit empty with no rent cheques coming in. Do your best to be a good landlord and give your tenants the respect you would like in return.