Before you can begin marketing your listing to the public and assuming your new role as a landlord, careful planning and preparation are required when it comes to setting up your home as a rental property. The first choice you must make before renting out your house is whether you want it to be a long-term rental—for example, by asking tenants to sign one-year leases—or a short-term rental—for example, by putting your home on Airbnb or VRBO. These important factors will be covered in detail in this guide on how to set up a rental property.
Establishing a long-term or short-term rental in your home
You must make sure that your house is ready for your renters to move in whether you’re preparing it for a long-term or short-term rental. You’ll want to double-check that:
- All appliances are safe and working correctly.
- Whether using a key or a lock pad, entering the house is safe and convenient.
- The house is clean and furnished.
- The furniture is in good shape.
You should take the necessary precautions to properly set up your profile for websites like Airbnb and VRBO if you plan to rent out your home for shorter periods of time, such as a holiday rental. You’ll need to add information such as:
- Your type of residence and the number of persons your space may hold.
- Whether there are any additional costs and whether or not children and pets are permitted.
- Describe your house and the neighborhood in general, emphasizing any benefits visitors can make use of while staying at your rental.
How to calculate the rent for your home
You must know how much rent to charge when renting out your home to ensure that you can meet all of your expenses, including a mortgage, property taxes, insurance, and utilities, while still having money left over for maintenance and upkeep. You’ll also need to pay for expenses related to rental applications, such as checking tenants’ references and credit histories, as well as employing a cleaning service and a property manager.
For instance, a home located in a smart city in Lahore will mean a higher rent since it’s a newly constructed home. So one needs to be aware of the neighborhoods.
Listing home as a short-term rental
You should do the following to prepare your business and finances for listing your house as a short-term rental:
- To figure out how much to charge for your property, use an internet calculator, like a rental estimate, to compare similar properties in the neighborhood.
- Take into account giving a discount for longer leases.
- Consider raising the rent over weekends, holidays, and other times of the year when there is a lot of travel.
- Include cleaning expenses, pet deposits, and additional upfront, non-refundable costs.
- Use insurance to safeguard your assets and yourself.
Listing your residence for long-term rental
In order to rent out your house for a long period of time, you should set up your finances and business as follows:
Choose the length of the lease you’ll be providing.
- Decide on a cost for the pet, security, and other deposits.
- If you want someone to take care of collecting rent and late fees, handling maintenance, and dealing with vacancies, and evictions, consider hiring a rental manager like a property management company.
- Invest in rental management software to assist with accounting and basic property administration.
- Use insurance to safeguard your assets and yourself.
Understanding your legal obligations and rights
A lease agreement is the primary legal document for a long-term rental. As a landlord, you must make sure that all lease or rental agreement provisions are written down and signed by all parties. You should ensure that your lease specifies the following:
- Timeframe of the Lease
- Some of the security deposit
- The date that the rent is due and the consequences of paying late or not at all
- Repair, basic maintenance, and upkeep obligations — Be sure to be clear about pest control and yard maintenance.
- List of each tenant
- Pets, painting, noise levels, homeowners association dues and bylaws, smoking, and other policies are covered.
- corresponding deposits
- Conditions of eviction Consequences for property damage
You must be careful to put yourself emotionally apart from your renters when you decide to rent out your house. Although it’s crucial to be adaptable, keep in mind that this is a business.
