Key Takeaways
- Understand Your Responsibilities as a Landlord - Successful property ownership requires you to handle repairs promptly, set fair rent, enforce lease terms, and stay compliant with tax and legal requirements.
- Make the Property Attractive to Renters - To stay competitive in the Salt Lake City rental market, your home must be clean, decluttered, and move-in ready. Basic improvements like neutral paint and working appliances are essential, while budget-permitting upgrades can further boost appeal and justify higher rent.
- Set the Right Rent and Screen Tenants Thoroughly - Use comparable market data and ROI calculations to price your rental competitively. Then, create a targeted marketing strategy and screen applicants carefully to ensure you find reliable, long-term tenants.
Now that you have decided to rent out your property, there are a few things you must do to be successful. You must be intentional in how you go about managing your properties and tenants. In today’s blog, we at Atara Property Management will walk you through proven tips on how to successfully rent out your house.
Know What Being a Landlord Entails
There is a myriad of benefits that come with being a landlord, from a recurring passive income and tax deductions, to build-up of equity and everything in between. But for you to realize such benefits, you must know and discharge your responsibilities properly.
For example, when it comes to repairs, you must ensure that you handle them promptly after getting notified. This will ensure that the tenant is not only comfortable, but that you prevent further property degradation. Other responsibilities that come with being a landlord include:
- Drafting the lease and enforcing its terms fairly.
- Determining the right rent amount and collecting it when it becomes due.
- Filing taxes every tax season.
- Choosing the right tenants for the property.
- Regularly inspecting the property for damage and lease compliance.
To ease the stress of these responsibilities and ensure properties are managed effectively, a landlord can hire a property management company.
Make the Home Desirable for Renters
To rent out your house, you’ll need to make it desirable to ensure you attract and retain quality tenants. First, give the home a thorough cleaning, depersonalize the spaces by removing any personal items, and declutter.
You should also go round the property testing that all appliances, and electrical, and plumbing fixtures are working as they should. Based on your assessments, consider making certain upgrades. If the budget allows, install energy-efficient appliances, in-unit laundry, smart home technology, and hardwood flooring.
Determine the Right Rent Amount
Calculate the right rent amount that will allow you to generate an optimal return on investment (ROI). But, how exactly do you determine the rent amount?
Start by looking at what comparable units in your area are charging. You can do this by interviewing area landlords or by simply doing your research online using reliable tools. Make sure the units are comparable in terms of square footage, location, number of bedrooms and bathrooms, and amenities for good results.
Another way to determine the right rent amount is to use your property’s value. This formula estimates the rent amount to be about 1.1% of a property’s value. For example, if your property is valued at $100,000. This would, therefore, mean you could rent the Salt Lake City residential rental property for about $1,100 a month.
You’ll also want to adjust the amount based on your property’s location, area amenities, and property features. The more desirable these are, the higher rent you could charge and vice versa.
Market the Home and Screen Prospective Tenants
At this stage, you can now start thinking about marketing the vacant home to prospective tenants. With marketing, your primary goal should be to showcase the property to a large prospective tenant pool. Begin by composing an enticing rental ad. It should contain an attractive headline, high-quality photos, and a detailed description section.
Next, think of where your target renter group is most likely to find the ad. Are you tenants more likely to check for linkings online or on social media, or do they prefer traditional methods like flyers and news papers?
After a successful marketing campaign, prospective renters will begin reaching out to you. This will provide you with an opportunity to begin the screening process. Be fair and consistent throughout the process to ensure compliance with the Fair Housing Act.
The following are some of the screening questions you could ask prospective tenants to maximize your chances of landing the right one:
- How much do you make per month?
- When are you looking to move in?
- Have you ever been evicted before?
- How long have you had your current job?
- Why are you moving?
Finally, require the remaining group to fill out an application form. Then, verify the information by calling prior landlords and employers, checking their credit rating and performing a background check with their permission.
Bottom Line
Renting out a home in Salt Lake City can be incredibly rewarding when the appropriate considerations are made. Working with an experienced property manager, in particular, can be the best decision you can make for your investment.
Atara Property Management can assist with all your needs! With decades of experience, you can trust us to help you succeed. Get in touch to learn about our quality property management services!