Renting Out Your Home: How to Protect Your Investment

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Renting Out Your Home: How to Protect Your Investment

Staff Writer · Feb 9, 2011

Renting out your home can give you additional income but there are certain things you have to take into account before you decide to put your home up for rent. One important thing you need to understand before you rent out your house is that you will have to take on the role of a landlord. You will not only have to draft the terms and conditions of the rental contract but you will also be responsible for any unforeseen circumstances that arise in the future. It’s a good idea to weigh the pros and cons of renting out your home since it’s a big investment that must be protected.

How You Should Protect Your Home When Renting It Out

If you plan to rent out your home, you need to do a few preliminary tasks. Find out the rental rate of houses that are similar to yours and post an advertisement with that figure in mind. Consider buying additional home insurance so that the cost of damage or repairs is covered in case your home is burned down in a fire or damaged due to any other incident. If you plan to put a furnished house up for rent you must also find out the total worth of all the goods that are present in your home and buy additional insurance to protect these items. Also calculate the estimated cost of repairs, maintenance and home insurance and compare this amount to the rental rate you intend to quote.

Additional Considerations When Renting Out Your Home

You could either put your home up for rent as a private party or contact a Realtor to do the hard work on your behalf. If you hire a professional agency to do it for you, you will be assured that the terms and conditions governing the rental contract protect both you and the tenants. You should also find out everything you can about the tenants that approach you to rent your home. Find out about their credit history and keep a copy of their identification handy. Besides this, you must send your tenants a written notice of inspection at least a few weeks before you intend to inspect your home.

During the inspection find out if there are any repairs that have to be taken care of and also look around the house to make sure it’s kept in good condition. If any unforeseen circumstances arise don’t hesitate to contact your local police department at the earliest and request them to keep an eye on your home for trouble or suspicious activity in the future.

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