How to Safely Rent an Apartment Out: 5 Steps
Renting out apartments is a stable and long–term source of income. Rental housing is always in demand not only among tourists and students but also those who dream of getting housing as soon as possible and without a mortgage loan. For property owners, this is a profitable investment in the future.
How to Rent an Apartment Out?
Interaction with tenants comes with risks. You may come across unscrupulous tenants, deal with the consequences of damage caused by them, or have disputes about non-compliance with requirements with them. To avoid such troubles and sleep peacefully, you need to approach the process wisely.
These are 5 tips on how to rent out your apartment that will help you not only keep calm but also increase your capital.
Step 1. Prepare for Renting Out
If you are serious about renting out premises, you need to understand that your apartment will become a home for someone. And any home should be clean, comfortable and cozy.
- Make a list of defects. Evaluate the apartment and make a detailed list of flaws and damages that need to be fixed soon. This may include not only problems with heating and draining in the bathroom but also equipment malfunctions. Such a list will help you effectively plan your budget and control costs.
- Fix the defects. Repair the apartment and fix all the defects on the list. Tell future tenants about the improvements – this will be an additional point in your favor.
- Equip the apartment. If the design of your apartment is outdated, it will not be superfluous to carry out cosmetic repairs. A beautiful, tastefully furnished apartment will attract more tenants. Do not forget about household appliances. A fully equipped apartment will look advantageous in comparison with alternatives, and it will be your reasonable argument for bargaining and setting a higher rental price.
- Take pictures. Juicy photos are the best way to attract the attention of potential tenants. When choosing a home, they focus not only on equipment but also on the appearance of the premises. It should be clear from the pictures what condition the apartment is in, so take a general plan and try to capture each room from all favorable angles. If a beautiful view opens from the window, do not hesitate to take a picture – this is another plus in the piggy bank of your apartment.
- Make an ad. Most often, tenants are looking for real estate via the Internet – it's faster and more convenient. If you want them to be interested in your offer, you need to execute it properly. Upload a portfolio and make a detailed description of everything in the apartment. Specify what improvements you have made recently. Set a real price, considering all expenses.
If you don't have time for these nuances or doubt your abilities, feel free to entrust the preparations to professionals. Chekashoff Estate is a reliable broker with many years of experience. Our consultants will evaluate your apartment, identify strengths and help you beat disadvantages profitably, as well as help you place an ad on our portal completely free of charge.
Step 2. Search and Check Tenants
The apartment is ready, but there are no tenants. It's time to start searching. There are several ways to find tenants:
- Posts, bulletin boards;
- Social networks;
- Portals and real estate agencies.
The first three options have long been considered obsolete and ineffective. They take a lot of time and do not guarantee your safety. Anyone can call you, from noisy and irresponsible individuals to scammers.
Contacting the real estate agency Chekashoff Estate is a real opportunity to rent out an apartment quickly, free of unnecessary hassle and investments. Our website contains a complete database of real estate objects, where tenants can easily find your apartment.
You can choose the category of tenants to rent the property out to students, families with children, etc. You also have the right to make demands regarding pets or smoking in the apartment. Just tell our employees about your preferences, and they will quickly find suitable candidates.
It is also important to check future tenants before making a deal with them. This way you will protect yourself and your property from scammers, debtors and unscrupulous citizens. Every fifth tenant is a potential threat to the landlord.
We will check the possible tenants ourselves, whether they are employed and whether they can pay the bills. You will receive a verified, solvent tenant in the shortest possible time and completely free of charge.
Step 3. Distribution of Expenses During Residence
During the stay in the apartment, force majeure is inevitable. Faucets break down, and household appliances fail. It is important to know in advance what you, as a landlord, must pay for.
According to the legislation, troubleshooting is distributed as follows:
- The lessor pays for the repair of technical elements of the equipment (electrical, gas and water installations), replacement of faulty windows or doors.
- The tenant pays for all other breakdowns that occurred during their stay in the apartment through their fault.
The rights and obligations of both parties are regulated by a rental contract, which is worth concluding when renting out real estate. By contacting Chekashoff Estate, you get a loyal intermediary and ally who will draw your attention to all aspects of the contract and protect the transaction from risks.
Step 4. Conclude a Rental Contract
Before renting out your apartment, it is necessary to conclude a property rental contract. This is not just a document that prescribes the requirements for tenants and the procedure for payments. The contract is your guarantee, which will minimize the risks of losing money or getting property damage.
The traditional rental contract includes:
- Names and details of the parties;
- Amount and payment procedure;
- The size of the security deposit;
- Term of the contract;
- Eviction warning period;
- Rights and obligations of the parties;
- Requirements for the operation of housing;
- List of equipment provided for use;
- Terms of termination of the contract.
Any rental contract must be accompanied by a delivery acceptance act, which determines the condition of the premises and the indicators of the meters for heating, gas, water, and electricity.
To be sure that the new tenant is interested in the transaction, you should set the amount of the security deposit or collateral. If the tenant refuses to rent at the last moment, the deposit will not be refunded to them. You have nothing to lose from a failed transaction.
As soon as both parties come to an agreement, a written contract must be signed and notarized. After the entry of the contract into force, it is necessary to pay tax on the rental of real estate.
It is very important to draw up a contract correctly – this will reduce the risks to a minimum. You can find a lot of contract templates on the Internet, but in practice, they turn out to be completely ineffective, because they are designed for common cases and do not consider all the pitfalls. You need to draw up a document on an individual basis to cover all your requirements for the tenant and not suffer damage from their non-fulfilment.
That is why it is worth entrusting the key step to the professionals of Chekashoff Estate. Our employees are legally savvy and know all aspects of real estate transactions. We develop unique contract models that are suitable for your case and will make you free of any problems with tenants. With Chekashoff Estate, you do not need to worry about your real estate and capital.
Step 5. Establish Rules for Communication With the Tenant
It can be difficult to establish respectful relations with tenants, but it is useful if you do not want to worry about your property for nothing. We understand that it is quite difficult to entrust an apartment to an unfamiliar person but try to observe the boundaries in communicating with tenants, and then they will reciprocate you, they will treat furniture and appliances with caution, and pay rent on time.
Rules of communication with tenants that will protect your rights:
- Pre-arrange the conditions of living in your apartment and enter them into the rental contract. If the tenant systematically does not comply with them, then you have every right to request compensation or evict the tenant by sending an eviction notice in advance.
- Set a time frame for the tenant to contact you. Otherwise, you may face constant calling for small things.
- Do not let the tenant “walk over you”, begging for money for repairs for which you are not obliged to pay. If the breakdown occurred due to the fault of the tenant, then they are obliged to eliminate it at his own expense.
- Require approval if the tenant wishes to make repairs in the apartment to their liking or replace the furniture.
- You have every right to see the apartment from time to time to check how the tenant is taking care of the housing. However, you should not pay visits without warning - notify the tenant about the arrival in advance.
- Keep your distance and do not make the relationship with the tenant a friendly one – this can have a detrimental effect on further cooperation. For example, you made friends with a tenant and decided not to renew the lease anymore, but to agree "verbally". And then the tenant will delay payment or, due to unforeseen circumstances, will not be able to pay the bills. You risk losing money.
- Do not be afraid to refuse if the tenant makes noise and interferes with neighbors, spoils items in the house, uses housing for other purposes or does not pay on time. It is better to terminate the contract with an unreliable person and find a new tenant.
Renting out real estate is a sure way to get an additional source of income not for a month or a year, but in the long term.
Entrust the rental of your apartment to Chekashoff Estate! Our company will take every stage of the transaction under its control: from the preparation of the ad for rental to the signing of the rental contract. With us, you will be able to find responsible and conscientious tenants quickly, free of charge and without extra effort, make a deal according to the law and you will not have to worry about your property.