Don’t Do These Five Things When Renting Your House.
Hey, Spencer Sutton here with gkhouses. And today the title of the video is “Don’t do these 5 things when renting your house.”
They are pretty simple things that I want to walk you through. If you follow this guideline hopefully it will help you avoid trouble down the road.
Point number one – Don’t get emotional
First thing you want to be aware of is not getting emotional about the pricing.
If you are a homeowner, we understand the home is very important to you, and you are more than likely going to have an attachment to it. You might think it is the perfect rental home and everything is in great shape, but a tenant might think otherwise.
Most of the time tenants are looking for great location and a basic layout. A property that is convenient for them. They are not looking for special touches that a homeowner might consider to be valuable to the property. What the tenant thinks is valuable may be different from what the owner has in mind.
It can get emotional if it is the house that your kids grew up in. Or even if there is something that you really love about the house and want someone else to appreciate. More than likely they will not pay attention to it like you do, and this is why it is best to stay objective.
For most tenants, it is a temporary solution. It is just someplace that they can live for a while, a year or so.
Point number two – Don’t ask your neighbor’s advice
The second thing you don’t want to do is ask your neighbor’s advice. As we mentioned in point number one, getting emotional is no good. Well, in our experience we have found the neighbors can be just as attached as you are.
As a matter of fact, they may have more invested in the pricing because they are 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.
Instead of asking neighbors, do research in other ways. Find rental properties in the neighborhood that your house is in and see what their pricing is like. Also, look on Zillow and Trulia for houses that are renting near you.
In doing this, you don’t want to stray too far out depending on what type of neighborhood you live in.
Throughout the pricing process, we want to be very objective. We are looking for the market rate.
If you are an investor, it doesn’t really matter what the person who sold you the house says it can rent for. The real question is what is the market going to pay? If you have the market rate right and you have a good house, then it will rent.
Just remember, don’t ask your neighbors for advice. Go the more objective route when looking for your pricing.
Point number three – Don’t neglect the small things
The third thing I want to inform you on is not neglecting to fix the small things.
When you are a homeowner and you live in a house for a certain period of time, you get used to things about your house that may not be perfect. You may be okay with those small things but those details could make or break a tenant renting from you.
I can promise you, they will let you know about the smallest little things that come up if they are not perfect.
Point number four – Don’t trust your gut
The fourth thing you don’t need to do is trust your gut over a solid screening process.
This happens 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 have 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.”
Collecting rent can be very easy as long as you have done your homework and done a thorough job of screening the tenant.
Quick note: There are plenty of professional tenants out there who know how to get in houses. They agree to an above market price, but then they stop paying rent 3 or 4 months in. You would rather have a lower market price and somebody who pays every month.
Just remember don’t slack on your screening process. Don’t trust your gut.
Point number five – Don’t forget to charge at least one times rent
The last point is don’t forget to charge at least one times rent for a security deposit.
The security deposit is going to be very important to you down the road. It’s the tenant’s money that you have put aside. You cannot touch it or use it for any kind of operating expenses.
It’s for any tenant related damage that is found when the tenant moves out. When you go back through the property you will have to determine what is tenant related damage or what is normal wear and tear.
You can withhold some of that security deposit money if you find any tenant related damage. It is very important to have it documented. Have everything documented before they move in so you can compare after they 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. It could be something that you did not notice.
Don’t neglect to charge at least one time’s rent for the security deposit.
So those are the five things not to do when renting your house.
If you do all of those, then you are going to wind up with a good tenant and probably a very good experience when renting your home.
Thanks and if you have any questions, don’t hesitate to reach out to us.
You can go to our website gkhouses.com or can email me directly firstname.lastname@example.org. I’m happy to help!