Understanding the Rental Market
The single-family rental market is hot right now, and it’s only expected to get hotter. According to Realtor.com’s chief economist Danielle Hale, rent price growth will likely remain elevated well into 2023. The Federal Reserve Bank of Dallas forecasts that year-over-year rental price growth will rise from 5.8% as of June 2022 to 8.4% as of May 2023.
Many remote employees have moved from where their employer is based, but they’re not ready to sell their homes just yet. This could be for any number of reasons – they may have to return to the office someday, or they simply want to hold onto their property as a potential investment. In the meantime, renting their home is a great option to cover the mortgage and earn some passive income.
If you’re a homeowner looking to join the thriving rental market, there’s a lot of preparation involved. Hiring a property management company may be your best bet, as they can handle everything from preparing the home for rent to marketing it, screening tenants, and managing the property on an ongoing basis. But for those who prefer the DIY route, I’ve got a comprehensive checklist to help you get your rental property ready for new tenants.
Complying with Laws and Regulations
As a landlord, you have to make sure you’re abiding by all the relevant tenant rights laws, local zoning and building codes, and state and federal laws that govern residential property rentals. This includes adhering to the Fair Housing Act, which prohibits discrimination in housing.
Your rental application, tenant screening process, and rental agreements must all comply with these laws. Do some research on the property rental laws in your area, and make sure you obtain all the necessary licenses and inspections before you even start advertising for a tenant.
Inspecting the Property
Once you’ve got the legal side of things sorted out, it’s time to do a top-to-bottom review of your property with a critical eye. New wallpaper or a fresh coat of paint can work wonders in brightening up a room and giving it a fresh, new look.
Next, go through and fix anything that needs repair – loose knobs or towel racks, wobbly stair banisters, doors that don’t close properly, tears in screen doors, tiles needing replacing, and all those little things you’ve likely grown accustomed to and no longer notice.
If you’re not comfortable doing a comprehensive inspection yourself, engage a certified professional to take a look at the property, both inside and out. They’ll be able to uncover any issues with the household systems and external features, like the roof, gutters, and garage door opener, so you can address them before your new tenants move in.
Tackling the Deep Clean
A dirty home is a huge turnoff for prospective renters. If you’re a pet owner, remember that not everyone is a fan, and they won’t appreciate Fido’s hair all over the place. Consider hiring a professional cleaning crew to do a deep clean – shampoo and steam-clean the rugs and hardwood floors, wipe down all the high-traffic areas like entryways and kitchen backsplashes, and make sure the windows are sparkling inside and out.
Even if you’re not planning to paint, make sure to spot clean and wipe down those high-traffic zones. And keep an eye out for any signs of a pest problem, like mouse droppings or insect carcasses – that’s an immediate deal-breaker for most renters.
Checking the Safety Features
Ensure you have all the required smoke and CO2 detectors installed and that the batteries are fresh. Check that all the door and window locks are in working order. And if there are any structural features that could be hazardous, like a loose stair railing, make sure to shore those up to minimize the risk and ensure tenant safety.
Preparing for Furnishings and Decor
If you’re renting out your home furnished or partially furnished, it’s time to do some decluttering. Remove all your personal photos, mementos, and any furnishings, artwork, or other contents that you’re not willing to have potentially damaged or stolen.
You want your tenants to be able to envision the space as their own home, so clear out the personal touches and make it a blank canvas for them to work with.
Protecting Yourself as a Landlord
Finally, talk to an insurance agent about getting the right landlord insurance policy. Your standard homeowner’s policy won’t cut it once you’ve become a landlord. A good landlord policy will cover things like property damage and liability if a tenant gets hurt on the premises.
And if you really want to protect your personal assets, you may want to consider forming an LLC or corporation for your rental property. This can provide an extra layer of legal protection, and it may even come with some tax benefits.
Preparing a rental property for new tenants is a lot of work, but it’s essential for ensuring a smooth and successful rental experience for both you and your future occupants. By taking the time to do it right, you’ll set yourself up for a positive, long-term relationship with your tenants.
And don’t forget – if the thought of handling all this DIY preparation seems daunting, there’s always the option to work with a professional property management company to take care of it for you. They’ve got the expertise and resources to get your rental property move-in ready and keep it that way throughout the tenancy.
Happy renting!
