Leasing a residential property for the first time may seem daunting. Yet, many property owners in Florida and throughout the country decide to lease out property as an investment and reliable source of income. Leasing property also comes with a number of tax benefits and interest from real estate appreciation.
As a new landlord, however, it is important to take the steps necessary to protect yourself, as well as the people you rent to, according to CNBC. Not only do you want to find quality renters, but you want to ensure you will not end up losing money on the transaction.
Getting your property rental ready
It is important to have property documentation noting the condition of your property before renting it out. Having a thorough inspection done will minimize the risk of major catastrophes that could occur once your renters move in. It will also help you determine if damage, beyond the normal wear and tear on the property, occurred. Other tasks to get your property ready may include:
- Set a competitive rent amount
- Make sure everything is in good working order
- Consider teaming up with a property manager
Keep in mind that as the landlord, you are responsible for the repair and maintenance of items.
Taking care of the legalities
Updating your insurance policy to protect yourself from anything that may occur is a must. Landlord insurance policies include potential property damage, liability and loss of rental income. It also protects you against vandalism.
Another critical component is the lease agreement. Make sure you include the names of all tenants living in the residence, terms, prices, deposits and fees and what will happen if the terms of the contract are broken. Having a solid contract will protect you should something happen to the property.
