Previously, we've tackled the lesson on Things to Consider Before You Rent Your Property. Several important questions were raised regarding the topic. Today, we're going to talk about a few additional questions you really need to consider before you put your unit up for rent.
Here the questions:
1. What are the factors you should decide on so you can properly describe your unit?
2. What is my recommendation for all landlords when it comes to smoking and waterbeds?
3. Why is it important to ask for a security deposit from your tenant?
Let's talk about the first of these 3 questions. What are the factors you should decide on so you can properly describe your unit?
- Pets - As a landlord, you are not required to accept pets even if your HOA allows pets. This is a personal decision on your part. The advantage of accepting pets is that your property becomes appealing to pet owners. You can also charge additional rent (pet rent). The disadvantage is that pets can be liabilities because they can cause damage.
- Smoking - Smokers have a difficult time finding rental units to accept them. The pros and cons when it comes to allowing smokers in your rental unit are similar to those with pets. Smoking is dangerous and this increases your risk for property damage.
- Waterbeds - Waterbeds are not so popular anymore but some people may want to bring these. When a bed bursts, water can cause damage to your property. Tenants are responsible for this damage.
- Length of term - How long is your lease going to be? Some people are looking for a two-year lease. You should decide how much flexibility you want. You might be using your property in the future for other purposes.
- Appliances - You need to decide whether or not to supply your tenants with appliances. Landlords are not obligated to provide appliances to tenants. You can supply some but not all. Most units do contain stoves. If the appliances you provide break down due to normal wear and tear, you need to replace and repair these unless your tenants are the ones responsible for their damage.
- What’s included as far as common area (yards, parking, etc.)
- What’s included as far as utilities
These are all considerations for you to take into account. Document these in the lease agreement. Doing this helps set expectations and allows tenants to understand what they are getting for their monthly rent.
For the rest of this lesson, existing Landlord Prep students should log-in to the module entitled Between Tenants - Deciding Rent & Rental Terms (More Decisions to Make).
Not a member yet? Join the Landlord Prep: Video E-Course and How-To Tutorials so you can access this section and get the complete DIY landlording course. This will help you stay knowledgeable and confident as a landlord.