Are you mulling over the idea of renting out your Huntsville rental property? It can be an absolutely great idea. Renting out your home can help you benefit from a passive income which you can use towards shoring up savings or paying down debt.
But while renting out your home can be lucrative, there are certain things that you’ll need to do right. The following are 6 tips to help you go in the right direction.
1. Know what you’re getting yourself into.
Is being a landlord an obligation you’ll be able to handle? This is the first thing you’ll need to determine. While the benefits can be many, being a landlord comes with a ton of responsibilities.
For starters, it’ll be your responsibility to stay on top of maintenance and repairs. This is a legal requirement commonly known as the “implied warranty of habitability.” Essentially, it obligates landlords to provide their tenants with a habitable living space.
In the state of Alabama, for example, you’ll need to provide your tenant with things like hot and cold running water, a working HVAC system, and a working smoke detector.
In addition to this, you’ll also need to respond to repair requests within 14 days after being notified by your tenant.
Aside from keeping the property habitable, other responsibilities for landlords include:
- Responding to maintenance issues on time.
- Treating tenants fairly in accordance with the Fair Housing Act.
- Eliminating any conditions that impact your tenant’s right to peace and quiet enjoyment.
- Collecting rent when it is due.
- Enforcing the terms of the lease agreement.
2. Abiding by the state’s landlord-tenant laws.
As a landlord, there are many laws that you must abide by in order to run a smooth and successful rental investment business. For example, are you familiar with the Fair Housing Act? Do you know what the protected classes in Alabama are and what they entail? For starters, the protected characteristics in Alabama are race, color, nationality, religion, sex, disability, and familial status.
And all these classes apply in all your interactions with a tenant. When drafting your rental ad, for instance, you’ll want to avoid including phrases such as “ideal for a single professional”, as this is considered discriminatory by the Federal Fair Housing Act.
Also, are you aware of the Alabama security deposit rules? Do you know the most you can charge your tenant as a security deposit should not exceed one month’s rent? Do you also know that you have 35 days to return the deposit, or whatever remains of it, to the tenant after they move out?
Other than those, the Alabama landlord-tenant laws also require landlords to:
- Make certain disclosures to their tenants.
- Respect the privacy of your tenants, and to serve them a 2 days’ advance notice prior to entry.
- Notify your tenant in advance prior to terminating their week-to-week lease or month-to-month lease.
- Take tenants through a judicial eviction process.
For a full rundown of your obligations as a landlord, please check Alabama Code Title 35 Chapter 9A.
3. Ready the home for renters.
Quality tenants are usually choosy when it comes to selecting a rental home. They usually target homes that are attractive and look cared for. To ready your home for renters, the following are a couple of things you may want to do.
- Give the home a thorough clean. Hire expert cleaners for optimum results.
- Check to see that all appliances are working as they should.
- Take care of all repairs.
- Repaint the home to renew its look.
- Ensure the home is secured against unintended entry.
- Spruce up the curb appeal.
4. Start the marketing process.
Once you have straightened things out, start the marketing process right away. Take note of things that make the property stand out and then draft a rental ad. For great results, make sure your rental ad has:
- A captivating headline.
- Detailed, yet concise summary description.
- Quality photos.
Next, have an expert proofread it. This will help ensure the ad is free of any discriminatory language.
Once the expert has given their approval, proceed with the distribution process. Market extensively in order to reach as many prospective tenants as possible.
5. Start screening prospective tenants.
During the marketing process, prospective tenants will start reaching out to you. This can be through text, phone call, or email depending on the contact information you provided.
Once a tenant has established contact, use that opportunity to learn more about them. Ask them questions such as:
- Why are you moving?
- Where do you work?
- How much do you make per month?
- Have you ever been evicted from a rental property?
- When do you intend to move in?
These pre-screening questions will help you save time on showing the property to tenants that may not be serious about renting your home.
After the property showing, also make sure to require all interested tenants to fill out a rental application form. Then, check and verify all information provided in order to choose the most qualified tenant.
6. Hire a professional property manager.
As you can see, renting out your Huntsville rental property is a process. And it isn’t an easy one, especially if you’re just starting out.
The best option for many is to simply hire a professional property management company. A good company will have a team of professional and experienced property managers to help manage your property smoothly and successfully.
Ideally, select a full-service property management company for complete peace of mind. This will ensure that they handle every aspect of managing the property, while you’re left to enjoy your time and income.
Bottom Line
If you’d like to hire a professional, Advantage Property Management can help. Our team of property managers are dedicated and prepared to help you maximize your return on investment. Get in touch today to learn more!