Real estate ownership provides a great way for you to realize the many tax benefits and also the ability to provide you a rental income. So, when you have a newly-vacant property that you yourself have moved out of or you have recently purchased the property, there are some options you can look at for turning it into a rental property. Here are some items to consider when you are facing this prospect.
Consider a Long-Term Rental
With a rental property, you can rent it out as a long-term rental with a rental contract between you and your tenants which details the length of time they are going to reside. A rental contract also details and locks the tenant into agreeing to pay you a certain amount of rent for that period of time. This protects you and the tenant, you are guaranteed rent until the lease ends, and the tenant is protected because you cannot raise the rent on them while the contract is in effect.
A long-term rental agreement is a great way for you to look for a responsible tenant and when you find one you can take steps to keep them on as a tenant. Some tenants may choose to rent and live in a property for years, however, others may only stay for the duration of the one-year lease.
Keep in mind you will need to take care of the property in order to keep them satisfied. For example, complete repairs in a timely manner, handle problems, and offer to clean the carpets after they have been in the house for a year. Carpets can get dirty with regular use and this bonus is a way to show your appreciation for your tenant.
Look At the Tourist Market
Another rental option to consider is with a short-term or vacation rental for your property. Consider the area in which the house is located in. If it is in a tourist area or an area that might see a lot of business travelers, you may have a good possibility to rent the property to short term renters.
With a short-term or vacation rental, you will need to furnish the house and provide services, such as internet, electricity, and other utilities included with the rent. You will also need to furnish the house with kitchen essentials, bedding, towels, and items, such as soap and toilet paper. Look at your rental unit as if it is similar to a hotel. Be ready to clean the house and launder the linens after each short-term tenant moves out.
With either long-term or short-term rental, you might look into hiring a professional property manager. They will be able to handle your property's management whether you work a full-time job or you do not live in the area. For more information, contact a residential property management service in your area.