6 Things to Consider When Renting Out Your Investment Property

Posted: December 8th, 2021

With more people rebuilding their confidence in moving and traveling after the initial wave of COVID-19, now is the perfect time to open up your investment property to eager renters. Purchasing and renting out an investment property is a great way for you to earn additional income or start your venture in real estate! Whether you’re renting to short-term or long-term tenants, it’s important to plan ahead to properly prepare your property to welcome future guests. Keep in mind that if you do decide to rent your property to vacationers, check in with your HOA to determine if vacation rental status is allowed. Either way, here are a few things you should consider before renting out your investment property. 

Consult a Property Management Group 

Taking care of an investment property can be a big commitment and responsibility! This can be even more time consuming if you already have a full-time job or don’t live nearby. However, you can opt to get help and hand off most of the work to a property management company. Property managers have the experience to handle the ins and outs of the rental process and understand the ever-changing investment and rental industry. 

Not quite sure what a property management group can offer? First off, the team can help market your property and secure bookings. This is especially important when you’re just starting out and face considerable competition. Once you have bookings coming in, property managers can also help you with bookkeeping, housekeeping, and maintenance. If you want to be a more hands-off property owner, a property management company can handle most of the responsibilities for you! 

Don’t Overlook Updates 

Other important details to consider when renting your investment property are updates and renovations. Look around your space and determine what may need to be spruced up and improved. With your own personal use of the property over the years, some things may need to be replaced or refreshed to be ready for renters. For instance, updating your bathroom or kitchen with modern appliances and decor can make your property stand out and seem more appealing to potential tenants. Replacing carpeted floors with hardwood, adding a fresh coat of paint, and even installing an updated security system can help you make the best first impression. 

If an update is costly, you can research how to get a home equity loan from your primary residence to obtain cash to renovate. This financing option is helpful for these upgrades since you can use the money for any purpose and can deduct the interest for home improvements. This could also be handy for you to have funds available in the future for repairs as well. Either way, guests will look for an attractive, functional, and relaxing space to unwind. Having everything in top shape will set your property apart from other potential rentals!

Deep Clean

Before renting out your investment property, it’s important to have it deep cleaned. Tenants value rentals that are bright, airy, and spotless. To make cleaning easier, you can hire a professional cleaning service or professional organizer. The cleaning team can take care of the process for you, so you can spend your time elsewhere. However, take time to communicate the cleaning procedures and processes that you have in place with the cleaning team and your tenants. This will demonstrate your concern for upholding health and safety, and help your guests feel that they can enjoy their stay with peace of mind. 

If your property is partially or fully furnished, you should also ensure that your furniture and fixtures are tidy and in good condition. Make sure there are no damages or cosmetic issues with your pieces and arrange them in an appealing and functional manner. However, if your property is unfurnished a deep cleaning will have you fully covered! 

Invest in the Latest Technology

In our increasingly connected world, more and more guests will bring smart devices with them in your rental. Make sure your home can handle this influx of technology ranging from phones to tablets, laptops and more. While most tenants will be long-term renters that will set up their own internet services, you may want to consider including free internet as a perk for short-term tenants. Even if you need to increase your rent to account for the cost of Wi-Fi, this may be the incentive people need to book your property.

In addition, adding certain smart home features to your rental can catch the attention of potential tenants and increase your property’s value. Things such as a smart TV,  fridge, or lock system can prompt people to schedule a showing or sign a lease. These are features that will give your rental a more modern atmosphere and will make your tenants’ lives a lot easier! 

Get a Maintenance Plan in Place

Having a maintenance plan in place is critical for ensuring an enjoyable stay at your property. You never know when something could break, malfunction, or need tuning up. Even before setting up your maintenance protocols, it’s essential that you assess the condition of your appliances and major home systems to determine if things need to be replaced or fixed. 

Once you’ve ensured that everything is good to go, you can create your action steps in case a maintenance issue should arise. One way to help your tenants is by creating a binder with procedures in place for what to do and whom to contact if something needs to be fixed. That way, they'll be able to have an easy reference on hand and actionable steps to take for assistance.

Put Together a Welcome Kit 

Especially if this is your first time renting out your investment property, putting together a welcome kit for your tenants is a great way to make a strong first impression and build a healthy tenant and landlord relationship. This small act shows that you care and your renters will appreciate the thought you put into it. You could include a nice handwritten note welcoming them into your property, snacks and drinks, gift cards to local restaurants and vendors, and other personal touches. Whatever you choose to include, this small, but thoughtful detail is sure to make your tenants’ stay memorable and may persuade them to renew their lease with you!

Getting your investment property ready to receive eager renters can be a lot of work. There are many details to keep in mind as you go about your preparations. Remember, you don’t need to do it all on your own. Seek the advice of professionals and utilize resources around you to create a memorable stay for your guests.