How to Rent Out Your House in Tempe, AZ
There are many reasons why a property owner chooses to rent out their home. It could be because you want to earn passive income, collect the return on your investment, or save money to pay off debt. Whatever your reason for renting out your house in Tempe, AZ is, it is a good practice to weigh all the pros and cons to maximize your profit and have a thriving business.
If you own a rental property that is near a beach, has a view, or located in the city, renting out your home as a seasonal or short-term rental is a good idea. However, you need to take into consideration the laws and regulations before listing it in popular housing marketplaces.
Here at get MULTIfamily Property Management, we want to help guide and prepare you for renting out your house by going over these must know points.
- Being a Tempa, AZ landlord means having multiple responsibilities and duties that also come with new expenses and fees. If possible, make sure that you have enough cash to fund the business, especially in the first few months.
- Tenant screening can easily be overlooked, but take note that it is crucial in protecting your investment. Choose your tenants wisely by following a comprehensive screening process.
- Just like any other business, protect yourself and your tenants by knowing the law by heart. Read and understand the Fair Housing Act as well as the Landlord Tenant Act.
- Depending on the city where the rental property is located, you can increase the pricing during peak season. Most cities are in demand during summer, usually from July to September.
- Maximize your profits by looking into short-term rental platforms when your property has a nice location and or view. Those that are worth listing are properties near the beach, lake house, or properties that are centrally located.
Understand Your Role
The benefits you reap from renting your home can be rewarding especially if your investment has started to generate revenue. However, these cannot be reaped without putting effort in managing the rental property.
Before you get into the rental business, gauge if you can handle the responsibilities of being a landlord first. This entails multiple roles and the journey is not always easy.
You need to be on top of tenant’s requests and make sure that they are addressed in a timely manner. You need to collect the monthly rent and conduct upgrades to increase your rental property’s market value.
As a Tempe, AZ landlord, it is your obligation to report your rental income on your tax returns as required by the Internal Revenue Service or IRS. You have to be well-versed with this in order to be compliant with the law.
Make the Space Habitable
Attract the right tenants by making sure that the rental is ready for them. Keep the unit neat and tidy. Conduct a move out inspection and address any minor issues to avoid them turning into major ones. Test all appliances, check all provided furnishing, and take the time to renovate the house to increase its market value.
Know your target market and prepare the house that leans toward that demographic. If you are renting out a room within your own residence, make sure that the tenant would still feel comfortable during tenancy.
Advertise the Rental Home
Once the rental home is ready for tenants, take note of its best features and highlight them in the listing. Depending on your target demographics, highlight appealing amenities that can attract the right tenants. Some amenities that are desirable to tenants include a garage, washer and dryer, air conditioning, cook and bakeware.
Be specific and describe what renters would get from the home during their stay. Some popular words used in listings and marketing ads are state-of-the-art, maple, granite, gourmet, hardwood floors, vaulted ceilings and stainless-steel appliances.
Combining modern technology and traditional marketing techniques is still an excellent combo to expand your reach. Add your listing in different online platforms as well as the local newspaper. You can also partner with rental property managers to help you with marketing your space and more.
Screen Tenants Thoroughly
For you to generate income, you have to keep the occupancy rate of your rental property high. You also want to choose the right tenants and keep them for the long term.
Quality tenants will also help you care for your investment, so this step in the process should not be disregarded or taken lightly. Create your screening procedure and be consistent with it.
Always base your decision on the tenant’s capability to pay fees as well as their ability to uphold tenant responsibilities and tasks. Once you’ve found the right fit, make sure to go over the lease agreement with them and set a payment schedule.
Work With Rental Property Managers
Hiring professionals to take care of the daily landlord duties and responsibilities will give you your free time back.
Partnering with rental property managers means having another set of eyes and hands to perform your landlord duties on your behalf. They are already well-versed with real estate laws, landlord-tenant rights, fair housing law, zoning and building ordinances, state and federal law, and local property requirements and regulations.
They offer a lot of services that cover all bases. They can help you set the pricing for the rental property in a way that’s competitive and at the same time offer tenants the best deal there is. Here at get MULTIfamily Property Management, we can do all these and more.
The Bottom Line
Being a landlord in Tempe, AZ means extra responsibilities to make it to your payday. If you’re looking for a rental property manager that can manage your Tempe AZ rental space on your behalf, contact us at get MULTIfamily Property Management today!