Many people mull over the idea of renting out their homes. They may want the benefit of extra income to save money or pay down bills, or they may choose this method as a way to wait things out until the economy improves. The motives are plentiful, but it's possible for this plan to become more trouble than it's worth when appropriate considerations aren't made. Here are five steps that will get you going in the right direction.

Understand The Responsibility Involved
First, you must determine whether being a landlord is an obligation you can even handle. The benefits of renting are numerous, such as the ability to deter the vandalism that often plagues an empty home, the ease of tax breaks and the ability to generate income that covers the bills and possibly even creates a profit.

However, being a landlord is also one more responsibility you'll need to fit into your life, and it's safe to assume that things will sometimes fail to run smoothly. You'll need to stay on top repairs and maintenance, collect rent, dole out more for your home insurance policy and try to avoid creating a less appealing home for potential buyers by keeping an eye on your tenant's housekeeping skills.

Prepare Your Home
In a down market, you won't be able to get away with renting out the home as is. Tenants are more attentive and choosy in a down market because of the increased availability rental homes, and their expectations are much higher.

Prepare for the new tenant by thoroughly cleaning your home and making sure any appliances are working and are in good condition.

If you've decided that you are renting out a room or area within your house, make sure that you can secure that area from the rest of your home.

Once the house has been straightened out, develop a list describing what makes the house appealing. Take note of those commonly desirable features such as a washer and a dryer, air conditioning and garage. Use rental terms to help "sell" the property. According to RentalsOnline.com, words and adjectives that'll help you get a renter include: "granite," "state-of-the-art," "stainless steel appliances," "vaulted ceilings," "maple," "gourmet," and "wood floors." Be sure to use any and all of the terms that apply to your home.

Next, post an advertisement of the home on reputable websites. Posting in local newspapers is also an option. However, most people find listings online.

Also, stay mindful of the time of year during which you plan to rent. Renters generally move in particular seasons. According to a recent study by Renthop.com, during peak seasons you can rent your unit for even more. The summer months, in general (July-September) appear to be the best times to locate a tenant; however, this seasonality can vary from city to city,

Hire Professionals
Renting out your home may seem like a simple task, but it's important to talk with attorneys and other professionals to make sure you are abiding by tax laws and local property rules as a result of the new status.

For instance, the IRS stipulates that all rental income must be reported on your tax return. Sure, you may qualify for tax deductions, but it's important to know which expenses are deductible. Plus, there are limits on how much you can deduct each year, and the amount you are able to deduct may differ with the rental activity reported on your tax return.

An attorney can also help you navigate the landlord-tenant laws, which vary from state-to-state, and help you understand your community's rules governing rental properties. You can also seek help drafting the lease, making sure that it follows local laws. Finally, talking with an attorney can help you determine suitable house rules and emergency contacts.

Set A Competitive Price
Set the cost of the rent by learning what other rental properties are going for in your neighborhood and community. Remember, potential tenants will be scouting around for deals, so set the rent at a competitive price and make sure you highlight all the most valuable aspects of your home.

Screen Tenants Carefully
Start looking for a tenant as soon as your property is ready to be shown. Then, choose your tenant very, very carefully. You need to be able to depend on this person not only to pay the rent on time, but also to keep your home in good condition. Also, if the person is someone you may be cohabitating with, learn their habits so you won't run into any nasty surprises.

Don't forget to gather references for potential tenants and check their credit histories. You should also take safety precautions when screening a tenant — after all, this person is a stranger!

Once you've found the right tenant, ask for a reasonable security deposit and arrange an appropriate payment schedule.

The Bottom Line
Renting a home to a potential tenant can be beneficial for both parties—but only if homeowners take the time to address and prevent the potential pitfalls of this option. After, all it's still your house.

When the average person thinks about real estate, their mind immediately jumps to homes for sale. Marketing these homes is important for landlords, and considerable effort should be made. Just because a for-sale and for-rent sign look fairly similar, doesn’t mean the approach here should be identical. Often, there are nuances and differences between the two.

Tips and Tricks for Marketing Rental Properties

Marketing a rental property is different than other forms of advertising. From who you try to attract to how you list your property, everything is unique. Let’s take a look at some of the top tips and tricks for marketing your rental properties and how they’ll help you attract and retain long-term tenants.

• Go online.

As a landlord, your best friend should be the Internet. Never before has there been a more direct channel for landlord and tenant interaction. There are hundreds of sites dedicated to posting listings and targeting tenants. It’s up to you to figure out which ones will help you find tenants for your properties. Some popular sites include Craigslist, Postlets, Zillow, and Trulia. Postlets is particularly useful, as it allows you to syndicate your listings across multiple online platforms and websites, including Zillow, Hotpads, Yahoo! Homes, HGTV, and MSN Real Estate.

• Go viral with social media.

Very few landlords have tapped into the full potential of social media in the real estate industry. However, those who are using it properly have found tremendous success. You can use Facebook to create highly targeted advertisements, or simply ask friends to share properties on their profiles. This is an easy way to get people talking about your listings. Facebook is currently the most conducive social media platform for marketing rentals, but Instagram could also be leveraged in some markets.

• Invest in professional listing photos.
When searching for a property online, what’s one of the first things you look at? Aside from the specifics and price, photos are what make or break a listing. Instead of snapping a few images on your smartphone, invest the time and money and get high quality listing photos. Not only do they attract potential tenants, but they also weed out people who won’t actually be interested. Engaging photos also make your listing more shareable on social media and other listing sites.

• The power of video.

Lining up multiple showings each week can be time-consuming and exhausting. While a tenant will certainly want to see the property in-person before signing a lease, you can save a lot of time by filming a showing and putting it on YouTube. This will satisfy those that are merely curious and will heighten interest in those who are serious about renting the property. Again, much like the listing photos, take the time to invest in a professional, quality video that highlights the best features of your rental.

• Encourage referrals.
Word of mouth is still one of the best ways to find new tenants. Many landlords have found success by offering referral incentives to friends, family members, existing tenants, and even associates. It could be something as simple as a $100 reward or a rent deduction. Regardless of what it is, it reminds people that you’re always looking for new tenants and are willing to reward them for their efforts.

• Offer an added bonus.
The key to real estate in a crowded market is differentiation. How can you set yourself apart from the property next door? Try offering a free gift or added bonus. It could be something as small as a $100 discount on the first month’s rent or something as large as a new TV or tech gadget. You could even think outside the box and offer a gym membership or restaurant gift card.

• Pay attention to curb appeal.
It may not seem like a marketing tactic at first, but sprucing up the front lawn can pay large dividends; think of it as your product packaging. When people drive by, the yard is the first thing they see. They’ll base their opinions on how well-kept the property’s exterior is, and it may determine whether or not they call. The most cost-effective things you can do are cut the grass, plant some flowers, and pressure wash the driveway and siding.

• Publicize the property’s amenities.
What sets your property apart from the others down the street? Hone in on what your target market wants and advertise any features that align with those desires. This could include anything from a fenced backyard or swimming pool to a neighborhood clubhouse or nearby park. Give prospective tenants reasons for why they should rent your property.

• Become a reputable source for community information.
If you really want to position yourself for long-term success, you can’t be seen as a local landlord. You need to become known as a reputable source for valuable information. Whether it’s a blog on your website, a weekly podcast, a YouTube channel, or a monthly newsletter, find a way to connect with others. Raise awareness for good causes, inform people about local events, and spark engaging conversations. When the time comes, people will remember you as more than the landlord down the street.

• Signage still matters.
In the day and age where most people use the Internet to find listings, a physical sign is still important. People still enjoy driving around and looking for properties, and will even get out of the car to grab a flyer! Invest in high quality signs that tastefully attract potential tenants. You’ll be able to attract an extra demographic and further reinforce your presence.

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