Guide to Renting Your Home

Rental property can be lucrative, although proper steps need to be taken to ensure landlord success.

• Physically Prepare the Rental. This involves inspecting and cleaning the home. Make sure everything is working and in good condition. Fix any problems (a leaky facet, broken smoke detector, or burnt out light bulb) and clean everything--from the floors and windows to the inside of the oven. Care for the lawn and seal cracks in the driveway. If furnishing the home, check to see if the home is properly equipped (for example, see if the kitchen has enough plates, bowls, and silverware), and buy any items that the home lacks.  Remove your most valuable items. If you are storing anything in the home, put it behind locked doors. You can also use zip ties to secure cabinets. Finally, if you have bold, colorful walls, repaint them to a more neutral color such as beige.

• Decide How to Manage the Rental. Are you going to manage the property yourself, or hire a company to manage it for you? If you manage it yourself, secure a legal lease document for you and your tenant(s). See RocketLawyer's sample lease agreement. Hiring a company reduces your profit because property management companies typically take 4-12% of the monthly rent for their services. On the bright side, the services such companies provide are extensive. They will screen tenant applications, preform repairs, collect rent, deal with IRS payments, and handle evictions as needed. Find a property manager in your area here. 

• Notify Your Mortgage and Insurance Companies. Let these companies know that you won't be living in this home. Note that you may be required to meet certain mortgage-as-landlord requirements. Mortgage companies have certain rights to your home to protect its security interests. Switching your homeowner's insurance policy to a landlord policy compensates for losses resulting from tenant negligence, natural disasters, and fire or water damage. 

• Notify the Post Office. Let them know to divert mail from current or previous owners.

• Set Your Price and Terms. This depends on your expenses, demand, the market price for comparable rentals, and the details of your property (does it come furnished?). You also must set your policies, addressing pets, smoking, security deposits, included expenses, rent due date, cleaning fees if applicable, and so forth. These should be spelled out in the lease agreement.

• Review Tenant Applications. RentalsOnline.com states that March-August are the best times to find a tenant. Ask potential renters of their employment and rental histories, in addition to recommendations from previous landlords. You can even ask tenants their Social Security number and written authorization to check their credit reports and criminal history.  

All in all, renting your home is something that takes consideration and time. Completing all the steps before listing your rental home will help ensure both tenant and landlord satisfaction.