Don’t Do These Five Things When Renting Your House.
Hey, Spencer Sutton here with gkhouses. And today the title of this video is ‘Don’t do these 5 things when renting your house’.
And so they’re really five pretty simple things that I wanna walk you through them that will help you avoid some trouble down the road.
Point number one of Don’t do these 5 things when renting your house.
First thing you don’t wanna do when renting your home is you don’t wanna get emotional about the pricing.
If you’re a homeowner, this home is very, very important to you and you’re more than likely gonna have an attachment and think things are great about it that maybe a potential tenant doesn’t really think so.
Most of the time tenants are looking for location and they’re really just looking for a general layout, something convenient, something good.
They’re not looking for just these special touches that a homeowner might consider worth more than what a tenant might place a value on them.
Don’t get emotional even if it’s the house that your kids grew up in, even if it’s, you know, something that you just love and you really want somebody to appreciate the very things that you appreciate about the house. More than likely they’re not.
For most tenants, it is a temporary solution, just someplace that they can live for a while, maybe a year, hopefully, a little bit longer than that if you want them to run it longer than that.
So, point number one, don’t get emotional about pricing.
Point number two of Don’t do these 5 things when renting your house.
The second thing you don’t wanna do when renting your home is you don’t really want to ask your neighbor’s advice.
When you’re thinking about pricing the house, it’s best to not get emotional and then really not ask for advice from neighbors because they’re going to be tied up in it just as much as you are.
As a matter of fact, they may have more invested in the pricing because they’re your neighbors and they’re going to live next to the tenants that move in there.
If you can avoid asking your neighbors for rental advice and pricing advice, that’s going to serve you better in the long run.
You’re gonna wanna do your research through other ways.
And you can most definitely, if you have other rental houses in the neighborhood, you can find those.
Also, you can look on Zillow and Trulia in looking for houses that are renting or for rent very near you.
You don’t wanna stray too far out just depending on what kinda neighborhood you live in.
And also, you want to find good comparable but try to be very, very objective about it.
So when we’re emotional about our house, when we’re asking neighbors, those are all very subjective things.
We wanna be very objective. We’re looking for the market rate, like, what is the market rate.
And if you’re an investor, it doesn’t really matter what the person who sold you the house says it can rent for. It’s really what is the market going to pay.
So you should be doing your own homework before you buy a property.
You should do your own homework so that you know exactly what this house should rent for or the range that it should rent for.
If you have the market rate right and you have a good house, then it will rent.
You know, when we have people who say they wanna rent their house for X amount and it sits on the market longer than it should or longer than they think it should, then we typically come back to them and say listen, “We’ve not had a lot of showings on the house and it’s more than likely because the market knows what your house should rent for.
So they’re not even interested in going to see it.” When the price is right, you will get people that are interested in at least looking at the house and seeing if it’s gonna fit them, if the interior worked for them, the layout, the bedrooms, the baths, all that type of thing.
Just remember, don’t ask your neighbors for advice. Go the more objective route when looking for your pricing.
Point number three of Don’t do these 5 things when renting your house.
The third thing I wanna tell you is don’t neglect to fix the small things.
When you’re a homeowner and you live in a house for a certain period of time, you get used to certain things about your house that may not be perfect and you’re okay with that but that doesn’t mean that a tenant is going to be okay with that.
I can promise you, they will let you know about the smallest little things that come up if they’re not perfect.
I’ve lived in my house for 21 years, my wife and I and our family, and I can tell you there are plenty of things that we are okay with that if I were going to rent my house or if I were gonna sell my house, most definitely these things would need to be taken care of, would need to be fixed.
Before you put it out on the market, don’t neglect to fix the small things because it’s those items that when a tenant moves in, they’re gonna become very frustrated and then you’ll be frustrated because you’ll be thinking, “Well, what’s the big deal,” you know, “This lock was all weird the entire time I had the house,” and that’s just not gonna fly for a tenant. So, don’t neglect to fix the small things.
Point number four
The fourth thing you don’t need to do and that is don’t trust your gut over a solid screening process.
This happens, probably, every single day when people are renting out their own house. Following your gut will get you into trouble.
There’s plenty of examples that we’ve had where owners are coming to us and saying, “Hey, I’ve got a problem with my tenant.
They started out great and now they’re just not paying rent. Can you help me? Can you manage my property and collect the rent.”
So, collecting rent can be very, very easy as long as you’ve done your homework and done a good job of screening the tenant.
Just to give you a heads up, there are plenty of professional tenants out there who know how to get in houses, who will agree to above market price for your house but then, you know, month 3, month 4, month, 5, they’re not paying and so that price doesn’t look so good anymore.
You’d rather have a lower market rate price and somebody who pays every single month.
So, that’s a big one. Just remember, you know, don’t slack on your screening process. Don’t trust your gut.
Have your criteria and I’ve got a video we’re shooting soon about the four criteria to use.
Just use the certain criteria and you will have better success than trusting your gut.
Point number five and the last of Don’t do these 5 things when renting your house.
And the last thing not to do is don’t forget to charge at least one times rent for a security deposit.
So the security deposit is gonna be very important to you down the road. It’s the tenant’s money.
You have to put it aside. And you can’t touch that. Also, you can’t use it for any kind of operating expenses.
And set that tenant security deposit aside but you want at least one times rent, and this security deposit is not the last month’s rent.
That’s not what it’s for. It’s for, so when the tenant moves out, you go back through and do your move out process, you’re looking at everything, you’re determining what is tenant related damage and what is normal wear and tear.
Anything that you feel is tenant related damage, you can withhold some of that security deposit money to fix it but you better have it documented.
Which means you need to document when they move in and you need to document on the move out.
Also you need to give the tenant an opportunity to tell you if anything was wrong with the house when they moved in.
Maybe something that you didn’t notice. So that’s a part of our process, what we do.
But regardless, you want to charge a security deposit.
We get questions from owners who will say, “Should I,” you know, “Do I need to charge a security deposit?” Well, absolutely, you must charge a security deposit.
Don’t neglect to charge at least one time’s rent.
So those are the five things not to do when renting your house. Don’t do those things. Don’t forget those things. And don’t slack on any of that.
If you do all of those, then you’re going to wind up with a good tenant and probably a very good experience when renting your home.
Thanks and if you have any kinda questions, don’t hesitate to reach out to us.
You can go to our website gkhouses.com. You can email me directly email@example.com.
I’m happy to help and happy renting to you.