According to the US Census Bureau, more than 36% of US households rent their homes for additional income. The last time such a hike in the rental market occurred in 1965. So what is the cause of this increasing demand for a rental property? The reason for this is that people are moving from one place to another to take advantage of better opportunities. It can either be for their career or education. Nevertheless, they need a place to stay.
Yes, you can actually buy a residential property. However, it's easier said than done. Plus, it's not a wise option for those moving in for a short time. You only need a place for a couple of months. That is why many people have started offering their space for rent.
There are two advantages of renting:
- You receive a regular monthly income.
- You don't have to worry about leaving your house vacant.
But here's the problem! How do you know if the tenant you are choosing for your home is helping you get the benefits above? Of course, you do a background check before leasing the property. However, there is no guarantee that you will receive compensation in the event the renter does not properly look after your space. That is why you should establish some rules for tenants before renting your property. To Know What These Rules Are – Scroll Down!
No abuse of property
The first rule that you should establish is that the tenant must not abuse the property in any way. In fact, you should include these points in your rental agreement as well. Any kind of intentional or accidental damage to property should be financially claimed by the renter. If this rule is included in the official document, the renter will be legally liable for liability.
Guest Policy
It is obvious that you cannot stop your tenant from inviting the guests to this place. However, you can set a policy for the guests that will help protect your rights. This article tells you when a guest becomes a tenant. How to write a guest policy to learn more about the guest. It helps you understand when a visitor is planning to become a resident of the property.
Timely payment of the rent
Becoming a landlord means that you have to deal with different topics every now and then. And “not paying rent” is one such problem. To avoid this issue occurring, you should penalize the payment due for late fees. In fact, it is better to only give your property to workers as they will be able to pay the rent on time.
Keep the house clean
After all, like in the end, it's your property. Perhaps one day you will use it for your own purpose. Hence, your tenant needs to keep the property clean. You should remove the trash from time to time and also make sure they comply with state cleanliness laws.
Wrap up!
If you have an empty house, it is a good idea to use it for additional income. Before reaching any agreement, however, it is important to establish some rules to ensure that your property is in safe hands and in good condition.
