Multiple circumstances can drive you most of the time reluctantly to abdicate your place of living that usually represents your ultimate precious property of yours during your life. Sometimes there may be an absence of alternatives, which intensifies the criticality of the matter. As a consequence you start a serious consideration and preparation for the procedure of changing your residence and allocating your current one for other people, i.e. tenants, acquiring the position of a “landlord”.
You shall always bear in mind that being a landlord is never to be taken irreverently, otherwise you will be under the threat of poverty and bankruptcy, bringing massive destructive outcomes to your life instead of remedial, aiding and compensatory ones.
Set up an integrated plan without any rush, some tips of which are somewhat elaborated as follows:
A residence alternative:
Logically speaking, you will not allow tenants into your house with you going homeless! And to clear out, homelessness does not necessarily stand for staying in streets; this definition also embraces the states in which you are residing in a place which is not essentially, nor officially and legally yours, for example a hotel or at someone’s else house (a friend, relative…), therefore it is never to be taken literally all the time.
You have to synchronize your landlord-related procedures and the activity of finding a new place of living so as to find your target as soon as possible and thereupon to be fully ready to manage when customers start to contact you.
You have a plenty of ways to utilize for finding the desired alternative accommodation, mainly the internet and newspapers. Never forget to be absolutely careful in this process; you never want your problems to be duplicated.
Supervision of your house’s condition:
The tenants have the right to reside in a well-constructed place, herein lays the vitality of carrying out reparative, updating and reconstructive procedures, as well as supervision and checkups of all the premises of your residence.
Being exhaustive and effort exerting is a fact, but always recall that people staying in your place are not doing it for free, and that your underestimation of the importance of such step can seriously render you involved in future disputes.
Some of the things to pay attention to are for example: walls and ceiling, water taps, furniture, fire alarm and smoke detectors, cupboards, air conditioning and central heating, presence of insects.
Estimate your renting price:
This process can be very tricky as it can render you absolutely confused about the appropriate price level. The following elaborations explain this:
- You may settle on a somewhat costly fee, especially in case you have accomplished a high-standard update to your house, predicting that this overall package will appeal to the high-income people, but you will realize that no one is ready to pay for such expenses because they are unaffordable, or maybe some people find the price catchy, but still seek “way much catchier” to save the money which they actually spend very easily on trivial objectives or they can spend easily but they do not want to (that is: skimp)
- You may, on the other hand, estimate an affordable, or even unbelievably affordable expenses, but you find that people are evading you instead of being interested in this “chance”, this can be attributed to the fact that so many people have the belief that the individual is deceptive or fraudulent, or aiming at something unsafe, otherwise why would they place such price for a place of a much higher rate? – unfortunately such belief prevails hugely, you are trying to make the whole issue more facilitated for both parties, that is you as a landlord, and people as tenants, yet remember that people do not have the power of mindreading, causing them to misjudge you. This does not however, apply to 100% of people, certainly there are still those, who will approach you for further information and ensure the full details, and the probability of success in this case can be relatively high as they find out that you are sincerely a landlord of a pure conscience and not as the prevailing doubts state.
There are internet facilities that assist you in determining the suitable range of pricing according to the given criteria, and you can also refer to a real estate firm that will take a commission for their contributions but they can still guide you to establish a successful sale.
Advertise and find tenants:
Social media and newspapers can often spread important matters very virally. You may also post advertising posters at certain places. Real estate agencies and firms can as well participate in finding a number of tenants and establishing communications between you and them.
Your tenants may be of your family, friends or relatives. In case of so, you are strongly recommended to keep the same seriousness and rules preservations, keep the social bonds aside in this issue or else you will fall in endless dilemmas and embarrassing situations that drive you most probably to nothing but losses.
Be careful to the maximum extent regarding this procedure, and make sure to do all the required investigations in case a customer shows their interest in taking your offer.
Formation of an integrated lease:
It is the renting contract, established between the two main involved parties. It is recommended to include all the necessary:
- Data of the tenant and landlord
- Contract issuing date
- Contract duration
- Data regarding the rented house with its premises and their detailed conditions and facilities.
- Terms and conditions of residence, including for example behavior and moral commitments, proper use of the house facilities, following the monthly payment regulations.
- Signatures of both parties
Of course, the lease may include more points, depending on the standards of the landlord. Make sure to legally register any successful negotiation or deal between you and you tenant, otherwise they have the right to deny your demands in case of a certain dispute arising someday due to the absence of a legal statement that reinforces your situation.
In nutshell you always have to search, consult and obtain more knowledge and a larger integrated background to avoid as much future conflicts as possible. Chose appropriate advertisement method. Be highly deliberate in this affair no matter how harsh it actually is, after all, the sake of your benefit and welfare has to be sought most primarily and importantly.
Eric Lawrence Frazier, MBA
President and CEO
NMLS 461807 CAL BRE 01143484