During a housing slump, selling a house is usually not ideal. Luckily for you, renting it out can be a great way to wait things out until the economy improves. What’s even better, you’ll be able to earn extra income!
If you do decide to rent it out, you must be prepared to do certain things right. Being a landlord isn’t as easy as just finding a tenant and collecting rent. Beyond these basics, there are a smorgasbord of other things that you must do.
The following are things to do to successfully rent out your house in Prince George’s County:
1. Get Your Home Ready for Rent
Sometimes renting out a home as it is isn’t feasible. This is usually true during a down market, where tenants can be choosy due to the increased availability of homes to choose from. In such a market, you’ll need to increase your rental’s desirability to attract quality tenants.
You must also ensure that the home meets certain basic habitability criteria. For instance, the structure must be safe and sound and the plumbing and electrical system must be functional.
2. Know Your Landlord Responsibilities
Renting out your house in Prince George’s County can be lucrative, however, there is a price to pay! Being a landlord isn’t for everyone. It’s a job that comes with a ton of responsibilities. Aside from collecting rent, you’ll also be responsible for other things as well, such as:
- Marketing the property when it becomes vacant.
- Screening prospective tenants to land the right one.
- Inspecting the home from time to time to ensure everything runs smoothly.
- Responding to repair and maintenance requests from tenants.
- Filing taxes with the Internal Revenue Service.
- Keeping yourself and the rental unit legally compliant as per state and local landlord-tenant laws.
You can still rent out your house even without having these crucial skills by hiring a property manager.
3. Market Your Home to Prospective Renters
This is a key landlord responsibility, as it can have a direct impact on your ROI. A good marketing strategy can ensure you land a large prospective tenant pool, which can increase your likelihood of finding your dream tenant.
To begin drafting a proper rental ad, you need to take note of the things that make your property stand out. These can be things like a garage, air conditioning, a washer and a dryer, or an outside area like a patio or balcony.
Other desirable features that quality renters can find appealing include hardwood floors, stainless steel appliances, and granite countertops.
With that in mind, try to make sure that the rental ad is detailed, yet concise. Besides naming the attractive features of the property, ensure that you provide prospects with the key basics as well. These can include things like:
- The dollar amount of rent.
- The security deposit amount, as well as other fees.
- Property location.
- Type of property.
- The square footage or number of bedrooms and bathrooms.
- The required security deposit.
Doing this will ensure prospective tenants know as much as possible about the property. As a result, this can help you maximize your chances of renting to the right tenant. Post the rental ad to online and offline platforms for maximum visibility.
4. Screen Prospective Tenants Carefully
Don’t take any chances by renting out your house in Prince George’s County to just any tenant you come across. Tenants, much like everything else in life, are created differently.
You should take every tenant who shows interest to rent out your home through a meticulous screening process. Require them to meet certain standards, such as:
- Have a Good Credit Rating: You can check this by running their details through credit referencing bureaus such as Equifax, Experian, or TransUnion.
- Have a Solid Rental Background: Call prior landlords and ask them crucial questions about the tenant. For example, did the tenant pay rent on time every month? Did the tenant cause any negligent property damage? Did the tenant respect the lease and its policies?
- Have a Reliable Rental Income: Ideally, only consider tenants making a rental income of at least 3X the monthly rent.
- Have a Stable Employment History: Don’t consider tenants who have a history of hopping from one employer to the next.
Make sure the process is fair and consistent throughout. For instance, if you require something from one tenant, make sure you do the same for other tenants as well.
5. Familiarize Yourself With Maryland Landlord-Tenant Rights
This is crucial for every landlord to know. Ensure that you familiarize yourself with the basic tenets of the Maryland landlord-tenant laws when renting out your house in Prince George’s County.
The following are some of the basics you should know:
- The Warranty of Habitability: This requires that landlords rent out homes that meet certain basic health and safety codes.
- Eviction Laws: You must follow the judicial eviction process when trying to remove a tenant from the unit for a lease violation.
- Security Deposit Rules: You must handle a tenant’s security deposit as per certain Maryland laws. For example, you must not ask for a security deposit exceeding the equivalent of one month’s rent.
- Fair Housing Laws: You must treat tenants equally, fairly, and respectfully based on the state’s protected classes.
Conclusion
If the prevailing housing market conditions aren’t in your favor as a home seller, renting it out can be a viable option. Just make sure you have the right skills and knowledge as a landlord. Alternatively, hire a property manager to do it on your behalf.
A good property manager will guarantee you peace of mind all while helping you optimize your ROI. If you do decide to take this route, Stripe Management can help. Call us today to learn more!