The Ultimate Renter’s Checklist

As my readers know, one of my 2018 goals was to buy a house. What some may have forgotten is that my husband and I have always had a goal to have an investment property. Renting your home can be a phenomenal investment that functions as a fantastic source of additional income. Although there are some legal obligations you have to comply with to make the property suitable for renting, once you get that ball rolling, it is a passive income that continues to generate revenue.

We are so excited to say that after years of aggressively fighting debt and saving, we are very close to this milestone of being landlords!  In preparation for renting out our place, I have spent a ton of time researching. I learned a lot during this process and wanted to share it with whoever might be interested in renting out their own property. I now present you with the Ultimate Renter’s Checklist.

Find the Right Tenants

It is essential you find tenants who are respectful of your property and your neighbors, and who will pay their rent promptly and without hassle. Finding the right tenants can be stressful, especially if you have a room or property sitting unoccupied when it could be accruing money.

In order to find the right people, I suggest the following:

• Handle walkthroughs in-person to get an initial read on potential renters. While you shouldn’t judge a book by its cover, you can usually get a good initial gut feeling about someone
• Make sure you do not dilute your potential rental pool by listing a rent or security deposit that is drastically higher than comparable properties in the area.
• If you are remodeling or working on a rental space, potential tenants care deeply about amenities such as washer dryer unit, new kitchen appliances, and plenty of storage space.
• Perform a background and credit check to confirm your renters are reliable and trustworthy.

Do an Initial Walkthrough Together

Although you could let the tenants report on any damage to the property without you being present, I suggest you perform at least one walkthrough alongside the new tenant. Record any issues as you both move through space, and keep an eye out for damage, scratches, or problems that seem beyond the general wear and tear. Your relationship with your tenant should be amicable and open. By starting their lease with the same expectations and understandings, you can save yourself from headaches later down the road.

Know Your Legal Responsibilities

If you want to rent out property, you should be well aware of your landlord responsibilities. The Implied Warranty of Habitability states: “Local building codes outline the standards that rental units must meet. As a general rule of thumb, an Implied Warranty of Habitability means that the landlord has provided: Drinkable water, hot water, heat during cold weather, working electricity, a functional smoke detector, working bathroom and toilet, sanitary premises, including the removal of insect or rodent infestation, is up-to-do date for building codes.”

Renter Safety

You are legally obligated to ensure the safety of your tenants. This includes putting locks and peepholes on front doors and putting locks on any entryways if you are renting out an apartment building with multiple tenants. Installing a security system is a cheap and easy way of making your home and rentals safer.

Short Term Rentals

If you want to use your space for Airbnb or temporary rentals, I suggest you put together an information page to help those staying in your place. This should include information such as:

• Wifi and wifi password
• TV and other gadgets with a simple how-to guide
• Parking information such as permits, street signs, etc.
• Where the linens are stored and what to do with them after the stay
• Instructions for appliances such as washer and dryer or bathrooms
• Emergency Contact or your neighbor’s information—if anything goes wrong and they need help from someone close
• An exit checklist of things you would like them to do prior to leaving

As you probably already know, financial stress can affect your mental health, but it doesn’t have to. Renting out your property should not be one of those strains. If you follow this ultimate renter’s checklist, it should be smooth sailing toward your goals of financial freedom.