Planning to Rent Your Home During Retirement? Here is a Head Start!
Are you retiring in the next few months? Are you confused about where you should retire? Or, are you wondering if you need a rental home or a brand new property? Retirees have to option to rent out their beautiful homes to similar people. If you have to be a homeowner for several decades, you might need a change. This is when renting out becomes handy. By renting a home or a room, you will be able to save some extra bucks. In this short article, you will read on how and why you should rent o ut a home during retirement.
#1 Know Your Needs
First of all, you should be aware of why you need to rent the home. There are numerous reasons to rent a property. Most of the time, people rent homes due to financial causes. However, this is not the case all the time! Some people rent homes for relaxing and enjoying a different lifestyle. The moment you save by renting can be used on something else. This could be anything like travel, investments or education. In fact, retirees share rental properties with others. This way they get a bigger and closer group to live with! Most retirees prefer roommates. They share breakfasts, dinners and even engage in community activities.
#2 Part-time or Temporary Renting
Moving on, you can try a part-time or temporary rental. When was the last time you shared a home or room? Was the experience interesting and good? Or, do you stay in a place with high vacation traffic? If yes, you must try a full-time, part-time or temporary rental. If you are new to sharing your home with another person, the experience will be new. Thus, try part-time or temporary sharing. If you are happy with the roommate, go ahead and share your home for months. People who live in destinations with high seasonal traffic make money by sharing their rental homes.
#3 The Rent
Once you decide to rent your home in retirement, you must decide how much to quote. Are you planning to charge on a fixed or variable basis? Many factors should be taken into consideration before you quote a price. Here are few factors to help you:
- Does the tenant have pets?
- Is your property located in a promising destination?
- How big is space? Are you renting a room, a floor or a home?
- Will the tenants have a separate entrance?
- What are the additional amenities? This includes electricity, cable, water, internet, and gas.
- Does the tenant have access to extras like backyards, house cleaners, swimming pools and hot tubs?
Before you quote a price, understand the rates in your region. Go through websites like Craigslist and Roomates.com. These sites will help you see present room costs and vacancy rates. When you quote a price, don’t underprice or overprice the property. Quote a rent that is both reasonable and affordable.
Don’t forget to consider the taxes too!
#4 The Right Tenants
Never rent your property in a hurry. Always wait patiently and rent your home to the right people. If you are lucky, you may find good roommates all the time. But, luck will not help you always. This is why you should start right and wait. Don’t forget to perform basic background checks. Also, go through the person’s credit history. If you are unable to find a good tenant, approach property management companies. Property managers can help you find roommates and tenants who would best suit your preferences. Moving on, you should keep a tab on the person’s cleanliness and schedules. There is no harm in preparing a set of interview questions for the tenant or roommate. After all, you will be sharing your home with this person for the next few weeks/months.
#5 Create House Rules
Don’t think twice to create house rules. Without house rules, your tenant or roommate can cause hundreds of problems. With experience, you will understand the secret in these words. Never expect the roommate to understand and read your head. Think about your rental home and see what could cause bugs. For instance, do you enjoy loud music? Do you prefer a silent home after 9 pm? Do you like to share food and some company? Write down the house rules. Don’t forget to include them in the contract. Both the tenant/roommate and you should agree upon the house rules before finalizing the agreement.
At all times, document the discussions. Anything about rent, deposits, and terms must be documented. This way you can avoid confusions and pointless conflicts!
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