Renting your reserve property is an excellent way of generating extra side revenue while maintaining its ownership. If you have a spare house or any other property, you can fetch an advantage by renting it out.
However, if you are doing it for the first time and have no idea what the procedure would follow, don’t worry!
There are only a few things that you should remember while doing it. Here, we’ve provided you with detailed guided steps that will allow you to do it conveniently.
Steps To Renting A House
Follow the mentioned 8 steps to ensure a hassle-free property rental.
- Make Your House Presentable
- Decide Rental Values
- List Your House
- Choose The Right Tenants
- Make A Good Relation With Prospective Tenants
- Accompany Tenant During Property Inspection
- Document Your Rental And Protect Their Security Deposit
1. Make Your House Presentable
The very first step in the process is to prepare your house for new renters. It is important to make your property presentable to increase its rental values or get more cash (rent).
The rental rates of the property highly rely on its condition and location. Remember, if it looks good, it’ll attract high-paying renters. If it’s new, you don’t need to spend a lot; however, you need to fix everything to make it spotless for the older one.
These may be:
- Cleaning house to make it dirt free
- Applying a fresh covering of paint
- The fixation of the older pipe leakages to prevent your property from water damage.
- Treatment of mold or termite infestation (if necessary).
In short, it is crucial to eliminate maximum issues before lending your house to someone else. Such maintenance increases the likelihood of getting a reasonable rate.
2. Decide Rental Values
In order to understand the renting rates of your area and what should be for your property, you must do a survey either physically or online. It will allow you to set an exact amount according to the value of your house. In the survey, you need to know how much other charges and rental demand of the area.
However, the value depends on the location, available amenities, facilities, condition, and size of your house. While deciding on a figure, make sure to have all these factors in your mind.
After this, go for a market survey; you can visit other houses up for rent in this area or contact different property dealers for assistance. Another way is to check it through various online websites to figure out an appropriate value.
3. List Your House
The next thing is to market your property to get a client. People use different ways according to their preferences, and the most common methods are:
- Advertise it in the newspaper.
- Hanging boards in front of the property to attract interested people.
- Contact traditional real estate agents.
- Using Online portals
Remember! Whenever you introduce your property to an agent or display it online, make sure to put correct information there. Must mention your rent demand, the number of rooms, total bathroom, and other facilities you are providing.
If you are using an online platform you must add high-quality pictures with good possible angles of your property. You can also mention the available amenities, facilities and nearby valuable points like markets, access to public transport, schools, etc. These additional points are rent-increasing factors.
4. Choose The Right Tenants
Choosing a suitable person or family to allot your house is crucial, and you should do it wisely to save yourself from later complications.
Let us tell you it is an essential step, and don’t skip or forget it at any chance. Whether you are doing it through a property consultant or not, make sure to conduct a complete inquiry before renting out your place.
Do some background search to check out if they have any past criminal records and their capability of paying rent on time.
Here are a few things to explore firstly about your new tenants.
- Ask them about their occupation.
- Ask about their past addresses, former landlords’ and their contact information for your inquiry.
- Inquire about the number of people in their family, their ages, and occupations.
- Ask why they are leaving their current house.
- Do they have any guarantor and their relation with him?
5. Meet The Tenants
Don’t forget; it is necessary to make a good relation with your new tenants to hand over your property in safe hands.
Usually, people plan a visit to see your house themselves before making any decision. It is the time when you can face to face interact with them and get some necessary details.
Ensure that you facilitate them by answering their queries and giving them full attention (if you don’t want to lose that tenant).
6. Accompany Tenant During Property Inspection
If the visitor is ready to be your prospective tenant and wants to sign an agreement with you, arrange a detailed inspection of your home. It is recommended that you do the whole procedure under your supervision.
Commonly this inspection session includes the condition of painted surfaces, water and gas supply, electrical outlets, doors, locks, flooring, checking of mold or termite infestation on timber and water damage.
During it, they can also ask general questions about the environment and security of the area, etc. Whatever query your prospective renter asked, it is always recommended to give them factual answers to avoid future inconveniences. It will also help you out in upholding a good relationship with them.
7. Document Your Rental And Protect Their Security Deposit
Finally, after selecting and negotiating with the right tenant, agree on a fixed security deposit and set monthly rent. In the light of Pakistan Real Estate Landlord and Tenant Law, all the property owners and tenants can negotiate freely.
Now when all the wordy work between you and your new renter has been completed, it’s time to secure your rights with legal documentation. The agreement should be registered under the Registration Act, 1908, section 17, for a lengthy period (more than a year).
A renter agreement comprises some general information like the names and contact details of both parties, period of the contract, amount of security deposit, and decided monthly rent. Other Information includes rental property description, annual rent increment rate, monthly due date, and bank account details.
Now you can effectively rent out your house with our detailed guided steps to renting a house without any hassle. It will also help you in getting reasonable rents and reliable tenants. However, to achieve desirable results, it is essential to follow all the steps.