WHEN Dave and Gina Schudi of Phoenix went house hunting last year, they knew the time was right to buy -- not sell -- a home.
So when they did purchase a new one, they rented out their old home.
"It all depends on the market," said Dave Schudi, who plans to sell the old house eventually. "We've got good renters in there."
Falling house prices and a slow market are forcing more homeowners to consider renting their properties.
It's something Tampa, Fla., realtor Julia Vakulenko suggests to potential clients.
"Basically, we ask all the people who contact us, 'Must you sell it right now?'" she said. "Most likely, it will just sit there or maybe sell below the market value."
Here are some tips for renting out your home:
- Familiarize yourself with local laws dealing with rental properties. Understand the eviction process, security deposits and what type of access you have to the property once rented.
- Determine whether you want to select the tenant and handle property issues or hire a company to do it. If you take on the responsibility, you are obliged to fix any problems (leaky faucets, broken furnace, etc.) or find professionals to do it.
- Develop a rental application. Ask questions on the application that will help you quickly determine whether you want this person for a tenant.
- Ask for references. Call former landlords and ask about the person's rental history. Verify that the references listed are really landlords and not the applicant's friends posing as landlords.
- Screen potential tenants. Once you've narrowed your field of potential tenants, hire a service to run a criminal and financial background check on the applicants.
- Consult with a lawyer or your provincial landlord-tenant boards before writing a lease. A well-written lease is crucial to protect your property. It will help you evict a tenant or hold them accountable for damage if necessary.
- Collect a security deposit equal to one month's rent.
- Perform a walk-through of the property with the tenant before he or she moves in. During the walk-through, make notes and take photos of any property damage. You and the tenant should sign the paper as an acknowledgement of the home's condition.
- Check on the property. Drive by at least once a month and look for signs of trouble such as garbage in the yard, extra cars in the driveway, or excessive wear and tear. Make arrangements to walk through the property three months into the lease to see how well the tenant is caring for it. (Make sure you give the proper notice required for entering the property.)
- Do not accept partial rent payments. Accepting money from tenants who are not paying the full rent can make it more difficult to evict them.
-- Associated Press
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