Top 10 Landlord Insurance Policy

Landlord Insurance Policy: Have you bought a new home before selling your old one? Are you temporarily relocating for work and want to defray your costs for an empty house? Do you want to try your hand at buying investment properties? Whatever reason you have to want to rent out your house, the goal is always to do it quickly and start making money. That said, it usually pays in time, hassles, and money to conduct your due diligence in marketing your rental, choosing your tenants, and ensuring you abide by applicable laws.

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Landlord Insurance Policy

1. Determine comparable rents.

Ideally, of course, you want to rent your house as quickly as possible for as much money as possible. Comparing your home to similar ones for rent in your area is one of the best ways to establish your home’s rental potential.

• Search for house rentals in your area on real estate websites as well as sites such as Craigslist. Find “comps” that appear similar in size, number of bedrooms and bathrooms, age and condition, and neighborhood location. If you are comfortable doing so, you can pose as a potential renter and tour a similar house in person for comparison’s sake.
• Check back every few days to see which ads have disappeared, which probably indicates a successful rental. You can also call and ask if certain houses are still for rent. This will give you an even better idea of the price level that moves rental properties like yours.

2. Make value-adding improvements.

Before trying to rent out your house, you may feel like you need to fix up every problem, major or minor. Try, however, to focus on repairs and improvements that will bring your house in line with its “comps” and add value in higher rents.

• Make any improvements that need to be made to “bring your home up to code” — that is, meet the requirements of your local building codes. This can save you from legal trouble down the road.
• Otherwise, focus on short-term value additions like cleaning carpets, touching up paint, and replacing broken window blinds. Unless your roof is leaking, for instance, more long-term improvements like a new roof are unlikely to bring back sufficient value in increased rents.

Landlord Insurance Policy

3. Weigh the costs and benefits of renting your house.

Before jumping into making any improvements or putting out your advertising, make a realistic appraisal of your likely rental income. Weigh this benefit against the potential costs — not only monetary ones, but also the possible headaches and hassles you may face as a landlord.

• Once you establish the prevailing rent for homes like yours in the area, consider closely whether this amount is sufficient to be worth your time and effort.
• If you are new to renting out property, or are concerned with your time or ability to deal with tenants, make small repairs, and collect rental payments, you may want to consider hiring a property manager. You can let them do all the “dirty work” for you, often at the cost of half of the first month’s rent and ten percent thereafter. The money you lose may be worth your time (and sanity).
• You can negotiate how much you pay your property manager. It’s best to find a good property manager through recommendations from people you know. If you don’t know anyone with a good recommendation, interview several experienced property managers and choose the one who is most knowledgeable about the law.

Landlord Insurance Policy

4. List where people look.

The way property rentals are advertised can vary depending upon where you live. While online listings are ubiquitous by now, the sites utilized and amount of alternative advertising done may differ widely.

• Even if you don’t subscribe to a local newspaper, buy copies every so often and look at the classified ads. If you see numerous listings for comparable houses for rent, you may decide that this is a good approach for you as well.
• List your house on the site(s) where you find the most nearby and similar house rentals. Utilize social media sites and video sites as well — for instance, linking to a video tour of your home posted on YouTube.
• Studies indicate that rental ads posted on Fridays are visited more often than those posted at other times, presumably because people tend to do their house-hunting on weekends.

5. Use your house as advertising.

Some people prefer not to include an address with rental advertisements, so that they can ensure a proper showcase for potential tenants. However, there is no reason not to attract the interest of people passing by your house anyway.

• While a basic “For Rent” sign gets the message across, a professional-looking, easy-to-read, eye-catching sign can arouse much greater interest, especially if you are seeking a particular clientele. Spend time making attractive signage, or have signs printed up. Provide key information about the property (beds/baths, and perhaps one or two distinctive features like hardwood floors or a hot tub).
• If your home is empty of valuables, consider leaving the blinds open and a light on in the evening so potential tenants can peek in, especially on a showcase room (kitchen, den, etc.).
• Host an event that will draw people to your house. Hold, for instance, a yard sale and offer information and viewings to interested parties.

6. Get creative.

If you’re lucky, placing an ad, putting out a sign, and waiting may be all you need to do. More likely, though, you will need to play a more active role in attracting the right tenant to your rental quickly.

• While you may want to think twice about renting to family or close friends because it inserts a personal element into a business relationship, utilizing this network to seek out potential leads can prove helpful. Have them ask around at work or places they frequent. Ask to place flyers at local businesses you visit regularly. Utilize your social media presence, and that of friends and family.
• If you need to find a tenant quickly or you’ve been advertising with no success for a while, you may want to offer incentives beyond just reducing the rent a bit. Offer referral fees, a first-month rent discount, a share of utility costs for a period, or allow pets if you had not intended to (but can accept doing so). Draw people to at least take a look at your house, but still be selective in choosing the right tenant for your property.