Renting out your property can be a smart investment to make some money, but it’s not always easy; there are several mistakes that many owners make that can actually wind up costing more out of pocket money in the long run. There is no 100% guarantee to weeding out bad renters, but taking the extra steps during the screening process can avoid potential trouble down the road. Zillow has compiled a list of 5 common mistakes to avoid when renting out your property:
1)Proper Documentation– make sure that you’ve put together a signed lease agreement, and make sure that the agreement comes with all of the bells and whistles to cover your house.
2) Discriminating Prospective Tenants – Protect yourself from an legal trouble by familiarizing yourself with fair housing laws, and make sure that your listing isn’t excluding any specific group.
3) Neglecting Proper Insurance – Renting out your space puts you in a vulnerable position for accidents, and leaning back on only homeowners insurance might not be enough to cover you if something were to occur. Protect yourself by looking into Landlord insurance.
4) Failing to Disclose Important Information – If you are aware of mold, asbestos, etc. on your property, be knowledgeable of information you are required to disclose.
5) Being Too Lenient on Screening – Choosing a reliable responsible tenant is highly important, requiring a credit check isn’t a bad idea to rule out any tenants who might cause a problem down the road.