5 Rental Tips for Homeowners with Income Suites

August 17th, 2014  |  Insurance

Some people view a rental unit as found money – While it can be a great source of income for any property owner, the key to having a successful rental unit is finding the perfect tenant. You know – the one that keeps to themselves, is respectful of your property and always pays their rent on time. 

 But, before you post an ad and sign a lease with your newest tenant, you need to educate yourself about rental property best practices if you want to put yourself in a good situation – and avoid having a rental unit that cause more problems than benefits. 

Here are 5 very important tips you cannot afford to overlook:

1. Don’t set the rent too low: Do your research and find out what others are charging for similar rentals in the area. If you price your rental too low, you are throwing away money. Lower rent may also attract the renters that you want to avoid. Set your rent at a reasonable price, given the unit features and the current demand of the rental market in your area. 
2. Get some professional advice: Getting professional advice is a very good idea, especially if you are new to the rental market. Consult with a real estate agent that specializes in rentals. They will definitely be able to help position your rental in a way to maximize your investment. 
3. Get everything in writing: You need to play by the rules when renting a unit in your home or in a rental property. Make sure that you have the correct paperwork in order and you get everything in writing, just in case a dispute with your tenant arises. 
4. Update your insurance: You need to update your home insurance policy when you have a rental unit or rental property. Failure to update with your insurer can lead to denied claims if there is an issue with the rental unit.
5. Be diligent with tenant selection: Finding the right tenant is perhaps the most important success factor when renting. Be diligent when looking for a tenant. Don’t accept the first application you receive and make sure that you ask the right questions – something a professional can help you with. 

 Rental income can go a long way if you do things the right way. Things can also go south and renting your property could also end up costing you money in the long run. The key is do your research and be an educated landlord. This will help you minimize risk and maximize your investment in a rental.