Renting out your home or one of your properties can be a very lucrative endeavour. If done right, it can lead to significant gains and the opportunity to acquire more rental properties. However, there are several factors you need to consider before renting out your home. GIL is here to guide the way with our helpful guide on what to know before renting out your home. From legal requirements, to rent pricing and tenant screening, we have you covered!
Understanding Legal Requirements
Renting out your home involves more than finding the right tenants and collecting rent; you’ll need to have a good grasp of landlord and tenant regulations. Having a good understanding of these legalities will help you avoid disputes and potential penalties. At GIL, we possess in-depth knowledge regarding the “Rights & Responsibilities” of both landlords and tenants in Alberta and can help guide you through these before renting out your home.
Here are some more legal aspects to consider before renting out your home:
Lease Agreement
A well-designed lease agreement is the cornerstone of a successful rental arrangement. This document should clearly outline the terms of the tenancy, including the rent amount, payment due dates, lease duration, and any policies on property uses and maintenance. You’ll need to make sure you understand this document as much as your tenants do to avoid any misunderstandings during the tenancy.
Permits and Licenses
Before renting out your home, make sure you check out Alberta’s information for landlords to see if you require specific permits or licenses to rent out your property. Obtaining the necessary permits and licenses is not just a legal requirement but also demonstrates your commitment to running a legitimate and compliant rental business. Failure to obtain these documents can result in fines and may jeopardize your ability to rent out your property legally.
Landlord Requirements
Becoming a landlord comes with responsibilities that go beyond simply collecting rent. These include maintaining the property, making necessary repairs, and ensuring the property complies with health and safety standards. Fulfilling these obligations keeps your tenants happy and minimizes the risk of legal issues.
Now that you’re up to date on the legal requirements, let’s talk about rent pricing and tenant selection.
Setting the Right Rent Price and Finding the Perfect Tenant
Setting the right rent price is crucial to securing the right tenant and ensuring you receive a fair income from your property. To determine a competitive rental price, you can start by researching the local market and looking at similar properties to determine their rental rates. Considering these factors will help you decide on a fair price that will work both for you and your potential tenants. You can reach out to GIL for help as we can guide you through a rental evaluation and counselling.
Finally, you’ll need to find the perfect tenant. This can be challenging and can take a long time. Remember, finding the right tenant is essential for a smooth rental experience. Utilize social media or local classifieds to advertise your property. High-quality photos and detailed descriptions go a long way to attracting more inquiries from serious renters. For more information, read our blog post on how to find the perfect tenant.
Renting your home can be one of the best investments you can make and can lead to other lucrative opportunities. For more information on how we can help guide you through this process, contact us or request a free property management consultation!
