The process of renting out a house to tenants involves advertising for tenants, prescreening the potential tenants, making background checks on the potential tenants and the signing of the rental lease agreement. Renting out a house is ideal for owners under certain situations, such as when the homeowner is looking for funds to add to mortgage payments or when the homeowner has to move because of job relocation, states BiggerPockets.com.
Another easy way for homeowners to rent out a home would be to hire a property manager. Property managers will take the bulk of the job in renting out the house, but will likely charge around 10 percent of the monthly rent and 50 percent of the initial rent, as stated on Bigger Pockets.
The following shows one method of renting out a home.
- Prescreen tenants
- Show the property to tenants
- Sign a lease agreement
Start by advertising for tenants via yard signs, in local newspapers, Craigslist.org and on real estate specialty websites, such as Zillow.com or Trulia.com.
Prescreen potential tenants, preferably over the phone, by asking questions including monthly income, credit history and number of would-be occupants, and by asking for references.
Show the property to interested tenants to ensure that they find the property to their liking and to see if they will make suitable tenants as well.
Once locating suitable tenants, have them complete the application process and then sign the lease agreement. The lease agreement should be prepared beforehand and an additional copy prepared to furnish to the tenant for review. Collect the agreed-upon fees before handing the keys to the new tenants.