Are you considering renting out your Boise home instead of selling it? This can be a potentially lucrative move. As a property owner, you could benefit from the extra income and the property’s price could also appreciate before deciding to sell at a later date.
But being a landlord isn’t a simple job. There are certain considerations that you’ll have to make and skills you’ll need to develop. This is why we at Ridgewood Property Management have put together the following tips.
Understand Your Responsibilities as a Landlord
While anyone can own a property, not everyone can successfully manage it. This is because managing a property requires certain skills, knowledge, patience, and hard work.
Unlike other jobs, being a landlord isn’t job that keeps typical hours. It’s a job that will require your undivided attention 24 hours a day, 7 days a week.
So, what responsibilities come with being a landlord?
- Filling the property when it becomes vacant.
- Advertising the property screening tenants to find the right one.
- Collecting rent when it becomes due.
- Handling repairs and maintenance issues.
- Abiding by all relevant laws.
- Filing tax returns during the tax season.
Make Your Property Rent Ready
In a competitive rental market, renting out a property without preparing it will most likely yield negative results. Renters in Boise have plenty of options to choose from and so they will have higher expectations.
Preparing your home for renters is the best way to fight off potentially long vacancies. As you probably know, vacancies are bad for business. A vacant property is prone to damage, and may also mean operating at negative cash flow.
The following are some tips to help you ready your home for occupation.
- Clean it thoroughly.
- Ensure appliances are in great working condition.
- Secure the home.
- Take care of small repairs and renovations.
- Spruce up the curb appeal.
- Conduct a walk-through inspection.
Be Aware of Your Legal Obligations
Being a landlord comes with a host of legal obligations. Failure to understand them can lead to a myriad of problems for you and your investment.
For example, do you know what the Idaho Fair Housing law entails?
Idaho prohibits discrimination against tenants based on race, color, sex, religion, disability, nationality, and familial status.
Do you know your responsibilities regarding keeping the home habitable?
As a landlord in Idaho, you have an obligation to maintain a habitable and safe rental. You must handle all requested repairs within 3 days of being notified by your tenant. Among other things, you must make sure dwelling structures, water, smoke detectors, electrical wiring, HVAC system, and plumbing and sanitation systems are working as they should.
Do you also know that you must return your tenant’s security deposit within 30 days of them moving out?
Wrongfully withholding your tenant’s deposit could result in potential legal action against you.
Set the Proper Rent Amount
Another responsibility you have as a landlord is determining the proper rent amount and making sure rent is paid on time. Undercharging or overcharging your tenant will only leave poor results. Specifically, undercharging will mean leaving money on the table, whereas overcharging will mean making your property less desirable.
You can determine the right rental price in a number of ways. For one, you could carry out a comparative market survey. Secondly, you could use the 1% Rule, which uses the gross income of a property. You could also hire a property management company to calculate it for you. A good rental price will also help you attract long-term tenants.
Market the Home Comprehensively
After staging the property, you can begin marketing it. Come up with a list that describes the best qualities the home has and then create a rental ad. Desirable features may include things like an air conditioning unit, a washer and a dryer, and a garage.
Next, use the right adjectives to describe the features that you have highlighted. Examples include stainless steel appliances, state-of-the-art, granite, maple, vaulted ceilings, and hardwood floors.
Don’t forget to take quality photos of the home. You should also hire a professional if you doubt your skills or the quality of your camera. Alternatively, just hire a professional property management company to do everything on your behalf.
Screen Prospective Tenants
Prospective tenants will start reaching out to you for inquiries and to schedule a showing once the marketing begins. But don’t get too excited and rent the property to the first tenant you encounter, evaluate everyone thoroughly.
You should only rent to the tenant that is most qualified. Such expectations may include:
- A good monthly income.
- A high credit rating.
- A solid rental history.
- No prior history of relevant convictions.
- A good employment history.
Make sure that your tenant screening process is devoid of any form of discrimination. Again, the protected classes in Idaho are race, color, religion, nationality, disability, familial status, and sex.
Ultimately, a good screening process should help you land your dream tenant. That is, a tenant who will care for your property, notify you of maintenance issues, renew their lease at least once, and pay rent on time, every time.
Hire a Professional Property Manager
The best thing about owning an investment property is that you have the option of outsourcing its management. So, if you’re without the skills, experience, and industry knowledge, the best alternative would be to hire a professional property management company.
A professional property management company can help you in all aspects of your property management. From marketing it, to screening tenants, to maintaining it, to collecting rent.
Bottom Line
With these proven tips, renting out your Boise property has never been this easy! But should you need expert help, Ridgewood Property Management can help. We provide quality property management services in Boise and the surrounding areas. Get in touch to learn more!
