Renting A House
By Don Romanek
Renting a house or a room in your home is a great
business that millions of people take advantage of to make some
extra cash. While many people rent houses each year, not all of
them are successful. Renting a house can be profitable and rewarding
if you manage it properly.
Benefits of Renting a House
The main reason for renting a house is you can gain a large steady
income. Many people buy rental houses in areas that have a constant
flow of tenants and rent them for much more than the cost of the
mortgage. Or, you have decided to sell, but the property value
is lower than you expected. Over time, a house rental will increase
in value and you will gain capital appreciation in addition to
a steady rental income.
Typically, a house will rent for a lot more than an apartment.
They generally will offer more space and they are usually rented
by groups such as families, professionals or students as an alternative
to buying or renting smaller spaces.
Another benefit of renting a house is to use it as a vacation
home and only rent for part of the year. Many people buy shore
homes and rent them except for a few weeks of the year.
Don’t forget about the tax advantages. Any tools, supplies
and services you purchase for the house can be a tax deduction.
Challenges of Renting a House
Of course there are many challenges to renting a house. While
rental income may be bigger, if a property goes un-rented for
a period of time, you stand to lose more if you can’t find
Maintenance of a home rental can also be challenging. Regular
painting, lawn care, snow removal can require constant attention
or qualified professionals that will cost you money.
Questions from your tenants on how things work, requests for
repairs and rent collection can also take away from the experience
of house renting.
House Renting Tips
1. Have tenants share some of the responsibilities. If you have
a small yard, require the tenant take care of lawn and snow removal.
Provide tenants with tools they need such as a mower, rake or
shovel and assist whenever possible.
2. Collect utilities in advance. Often utilities will be in your
name and difficult to recoup from tenants, especially after they
are no longer renting your house. Determine the average cost of
utilities used and include that amount in the rent.
3. Make the tenant feel at home. When renting a house, you want
the tenant to stick around for a long time. Do something special,
or provide a service that makes it hard for your tenants to want
4. Provide parking or make it easy of your tenants to park a
5. Provide laundry. Tenants won’t want to drag there laundry
in and out of your house rental. This simple feature will go a
6. Pre-wire your house with Cable/DSL service. Your tenants will
want this anyway so you are better off having it professionally
installed. It will help you rent the house and avoid tenants drilling
holes in your walls.
Before you Rent a House
Make sure your insurance covers your house as a rental. Some
policies may charge extra if you are renting your house but if
you don’t let the insurance company know, you may not be
Check with your city or town on regulations. Cities often have
rules on what rooms in a house may be used for renting or the
number of non family members that may live together.
Take time to research rents in the area. Get the most out of
your house rental by getting facts on other rentals in your area.
Don Romanek has been investing in Real Estate for 15 years. He
runs Off Campus Network, LLC. where landlords can advertise Houses
for Rent or find articles, and forms to help manage rental