Problems to Look Out for in Renting Your Home
Renting out your home provides benefits like increased flexibility. Even so, renting a home is very different than renting out a unit in a complex, and problems exist that are specific to house rentals. To make the most of your renting opportunity, as a landlord, you must minimize or eliminate these issues. In most cases, this means having an ironclad lease constructed with legal help, but you have to address social and financial issues, too.
Presumed Flexibility
When people rent a home from a private landlord, they understand they do not have to deal with a larger property management company. In some cases, this causes people to assume they can get away with more, or that the lease somehow isn't as concrete. For example, they may pay rent late more often, depending on the personal relationship with you to avoid penalties. Don't stand for this. As a landlord, take initiative and enforce all lease regulations, and don't hesitate to notify your tenant of violations. Send the message you are a serious landlord and will accept no less than serious tenants.
Failure to Report Problems
Occasionally, renters consciously or subconsciously absolve themselves of reporting problems with the property. They assume that it is the responsibility of the property owner to keep up the property -- which, to some degree, is true -- and that you as the landlord should know what is happening with the house. However, tenants have a responsibility to keep a rental property in good condition, as failure to report problems can cause damages that result in expensive repairs or injuries. Inspect your home routinely, but make it clear to the tenants in the lease and through verbal communication that they are to notify you about problems or face penalties.
Expenses
When you rent your house, you do not give ownership away. This means you still are responsible for all expenses related to the home, including maintenance costs and taxes. Make sure what you charge in rent covers these costs at a minimum, as you'll lose money on the rental otherwise. The trick, of course, is doing this while setting a price that is fair according to current market value.
Unauthorized Guests or Tenants
It sometimes is easier for a property manager than a landlord to spot unauthorized guests or tenants. This is because property managers tend to be on-site every day, and because complexes have additional staff who can monitor the units. Instruct your tenant to notify you of any guest who will stay an extended period, and get vehicle information just as you would as a property manager. Spin this positively in the direction of tenant safety -- if you know who is on the property, you reduce the likelihood of illegal activity or conflicts.
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