4 Tips for Renting out Your Murrieta Home
When you’re ready to move out of your starter home into your forever home, you have several options for dealing with your existing property. An alternative to selling your starter home is to turn it into an investment property and rent it out instead. If you’re thinking about renting out your Murrieta home, here are some tips to help you get started.
1. Research the Market
Before you turn your starter home into an investment property, research the current market to find out if homes for rent in Murrieta are currently in demand. If they are not, then renting your home may not be worthwhile.
An overview of the current real estate market in the region shows that the inventory of homes for sale is low and demand is high. This means that either selling or renting your home could be worth your while because people who are not able to purchase a home may rent as an alternative.
2. Know Your Rights and Responsibilities
Before you rent out your home, be sure you understand what is required of you as a landlord. The law requires you to perform maintenance and repairs on your property and to comply with fair housing laws and zoning ordinances. At the same time, you have the right to set reasonable rules for the property (e.g., no pets) and to expect your tenants to comply. You also have the right to expect payment of rent on time and in the correct amount.
3. Understand the Financial Implications
Renting your home can be a complex financial situation. You need to set a fair price for the rent, which you can determine based on what other landlords in the community are charging for comparable properties. There are also tax-related issues that you have to navigate. Generally speaking, you have to report income from a rental property on your taxes. On the other hand, you may be able to deduct at least some of the expenses related to running the property. You may want to speak with an attorney or an accountant about tax matters related to renting out your home.
Ultimately, you will have to weigh all these factors to determine whether you can turn a profit by renting out your home. If not, you might want to consider selling instead.
4. Screen Potential Tenants
When choosing a tenant to rent your home, ask for references and perform a background check. You are looking for someone who is reliable and trustworthy and will treat you and your home with respect by paying rent on time, following the rules, and not causing damage. When you are checking references, you should confine yourself to questions about the tenant’s dependability. The law prohibits you from making decisions on whom to rent your property to on the basis of factors such as race, religion, national origin, etc. Best not to mention these matters at all.
You can come to our La Cresta Real Estate listing team with any questions you have regarding buying, selling, or renting out real estate. Contact us today for more information.