According to the U.S. census bureau, more than 36% of U.S. households are renting their homes to earn extra income. The last time such a hike in the rental market occurred in 1965. So what is the cause of this rising demand for a rental property? Well, the reason is that people shift from one place to another for availing better opportunities. It can be either for their career or education. Nonetheless, they need a place to stay.
Yes, they can indeed purchase a residential property. However, it is easier said than done. Besides, it is not a wise option for those who are moving in for a short period. They just need a place for a few months. That’s why many people started offering their place for rent.
There are two benefits of renting:
- You will receive a regular monthly income.
- You don’t have to worry about leaving your house vacant.
But, here’s the issue! How will you know if the tenant you choose for your house will help you in availing the above benefits? Of course, you’ll do a background check before you lease the property. But, it doesn’t ensure that you’ll get any compensation in case the lessee doesn’t take proper care of your place. That’s why, before you rent your property, you should make few rules for the tenants. To know what these rules are- Scroll down!
No property abuse
The first rule that you should make is that the lessee should not misuse the property in any way. In fact, you should include these points in your lease contract as well. Any kind of damage to the property intentionally or accidentally should be financially claimed from the lessee. When this rule is written in the official document, it’ll make the lessee legally liable for the liability.
It is obvious that you can’t stop your lessee from inviting the guests to the place. But you can make a policy for the guests that will help in the protection of your rights. You can read this article to know When Does A Guest Become A Tenant? How To Write A Guest Policy to learn about the guest. It will help you in understanding when a visitor is planning to become a resident of the property.
Timely payment of rent
Becoming a landlord means you have to deal with various issues every now and then. And the “nonpayment of rent” is one such issue. To avoid this issue from arising, you should impose a late fee penalty on the payment due. In fact, it is better to give your property to working people only, as they are capable of paying the rent on time.
Keep the house clean
Lastly, as at the end, it is your property. Maybe one day you’ll use it for your own purpose. Thus, your tenant must keep the property clean. They should remove the garbage from time to time and also ensure that they are adhering to the state laws of cleanliness.
When you have a vacant house, it is a good idea to use it for extra income. However, before you make an agreement, it is also essential that you set few rules to ensure that your property will be in safe hands and in good condition.