I have some questions about renting out a house?

[Jack]

I have just bought another house and I would like to rent the house I have now out. Its paid for and everything in it is updated. What are some things I would have to do if I wanted to rent it out (legally)? Do I have to get the house inspected? What do I do about utilities? Do I have to do a credit check? I don't mind whomever rents it having pets because I know how hard it is to find homes these days that will allow pets, but what should I do if a pet was to destroy something? The house is insured. What would I be finding out if I had to run a credit check? What should I red flag or note? Do I make the lease or does a real estate agent or a lawyer? I know this is alot to ask, but I plan on getting professional help. I just want to see now what I may be getting tied up in. I don't want to sell this house because the economy and real estate is VERY VERY bad where I live and many many people are looking to rent. Any tips or things I should no feel free to tell. Thanks to all!

[wnc817]

Be VERY picky about who you rent to. Old people are best. I wouldn't allow pets, unless you want piss and shit on your floors. Get an insurance policy that will cover damages if the tenants damage the property, or you may be able to require that they get a renters policy that would pay for any damage. The most important aspect is to screen the tenants very carefully.

[96_ZORRO_LT1]

Just  go to a real estate agent that deals in renting houses. They get a certain percent but it is worth it . They know exactly what to do and in these days you need to cover your ass

[Alvaro_V]

You do have to get it inspected, they pay utilities all you have to pay for is water, garbage and sewage. Say no to pets, make sure you have an estimate of how much carpet cleaning and paint will be for if they ever move out, so that would be their deposit when they move in. Thats what we did, oh and have a lawyer right up a lease for you, depending on how long it is it will probably only cost $60. Good luck.

[shiprepairwoman]

Do the credit check, collect a large deposit, don't allow pets. You aren't the tenants friend. Not your problem if they can't find another place to live, don't listen to sob stories. Check the credit report and if they have been not paying bills don't rent to them.
Most first time landlords are fooled by smooth talkers and are just too nice. Evictions take time and money, pets are destructive. If you must allow pets control breeds of dogs and collect large extra deposits. They wet on carpets, dig up flower beds and could bite neighbors, you don't get much more rent for allowing them so just don't do it.
If the tenant is late with the rent start eviction, make sure you have a large late fee in the lease and never ever give them a few more days. If they can't pay the rent it isn't your problem, let them borrow from friends, family, payday loan stores. Land lording is a business not a charity. Do a credit check and a criminal background check and make sure they have a steady and adequate income. If they don't earn 4 times the rent don't rent to them.

[David_M]

Renting property entails a lot of detail work.

You need to have a legally correct lease.  You absolutely should do background checks before renting to anyone.

You need to collect a deposit at least equal to one month's rent and if you choose to allow pets, you need to collect a larger deposit.

Utilities will be paid either by you or the tenant depending on what is specified in the lease.

You also have to be readily available to deal with problems with the property:  if the furnace goes out, the stove doesn't work, the toilet won't stop running, etc.

In my opinion, you are better off letting all this be handled by a property management company for anywhere from 5 to 10 percent of the rent collected.

That prop mgmt fee, by the way, along with repair and maintenance expenses, are all deductible on you income tax reporting of rental income.

[devistatinglywonde]

This is my experience as a renter. My first landlord didn't care about kids, or pets and was great. And I got my damage deposit back when I moved out. My seconded rental was horrible. Broken windows, no fire alarms, fleas from the last tenant, broken locks on the door etc. etc. etc.Not to mention the mould in the bathroom, and the oil spill in the basement that was not cleaned up. And he didn't give me back my damage deposit when I moved out because I didn't give him enough notice. This after a home invasion that happened when I was at work. But the home I rent now is wonderful. Take a video log of the home be for you rent it. Keep the home in good repair.  Get a damage deposit. Have them sign a lease. In the lease set the rules, such as heat must be on so pipes don't freeze, only the named tenants may occupy the premises. And please give 24 hour notice if your going to be on the premises to do work. I'm thankful he didn't want a credit check as my home had burned down and my ex had cancelled the fire insurance, and I owed over one hundred thousand dollars. Some times good people have to start over with nothing, and sometimes even less than that. Good Luck and don't sell your house, make it make money for you.

[anythingwilldo]

Just consult a real estate property manager. You will need landlords insurance and house insurance.

The property manager advertises the place, screens tenants, ensures rents are paid on time and does regular house inspections. They can also pay your annual rates and bills such as water and sewerage. They also organise any repairs for you.

A good idea to hang on to your hourse.

[Pamela_II]

Check out and search www.NARPM.org for a professional property manager that can answer all of your questions and let you know what is going on in your local area.