If there are other vacation rentals in your neighborhood, that is an excellent sign that your home is rentable. Search an online site like Airbnb for highly-rated listings in your area. Are there many listings in your area? Does your home offer similar amenities? Are you willing to add or upgrade amenities to make the home a desirable rental?
City and county codes often restrict or regulate rentals. To learn the laws in your area, you can begin with a web search for “City of (Your Town) rental regulations,” or by calling your city’s main office or information number to begin tracking this information down. There may also be state or local “rental taxes” for which you will need to register an account and agree to collect and forward the required amounts, if not also state your tax account number in your advertisements. [2] X Research source If you own the property, the terms of your mortgage may include restrictions on renting out the home, especially within the first year. Read your mortgage agreement carefully, or call your lending agent for clarification. If you are a renter, your lease almost certainly includes language on subletting. Check with your landlord before proceeding. Many homeowners’ associations include restrictions on renting and subletting. While many people see these organizations as toothless annoyances, an active HOA can have a lot of power to levy fines against you and your property so it pays to take them seriously.
Some locations have very different regulations on short-term and long-term rental properties. These vary widely from place to place, so learn about the laws in your area before you commit to a rental plan. [3] X Research source New York City, for example, prohibits short-term rentals of less than 30 days, making the use of sites like AirBnB in these areas illegal in many cases. [4] X Research source
Do you engage well with strangers? Can you make people feel welcome and at home? Are you willing to accept the risk and hassle of people entering and leaving your home, often at odd hours? Are you prepared to answer guest’s requests for information, extra towels, etc. in a genial fashion? Is your entire household on board with renting out the space? If you are thinking about renting the entire home: are you prepared for the eventuality that your home and landscaping will suffer from substantial wear and tear and possible damage?
It might be helpful to purchase one of the many software programs available that are specifically designed to help manage rental properties.
The kind of permits you will need and the process for getting them varies widely from location to location. Once you have determined the kind of rental you want to offer, contact your city or county government for specific instructions for getting the permits you need. Be aware that in some locations, getting a rental permit can be a fairly extensive process that requires an inspection by the city, a notification letter to go out to your neighbors, and the payment of a permitting fee. Remember that permitting and inspection fees, like all other expenses you incur while preparing your rental property, are tax deductible so be sure to keep careful records.
The requirements for safety equipment in rental properties vary widely by region. Smoke detectors are the bare minimum in most places. You will be informed of further requirements through the permitting process. [8] X Research source Unless you are going for a very high-end rental, do not furnish your rental with extremely expensive furniture, linens, towels, etc. These items are likely to get damaged or disappear. Look for items of decent quality that are not too expensive.
Get personal recommendations from other property owners, or look for a service with excellent online recommendations.
Look for a landscaper that is licensed and bonded, with a good reputation.
Send your guests detailed information on how to gain entry to your property before they arrive. There is nothing more frustrating than arriving at a rental home, only to discover you have no idea how to enter the parking garage or don’t know what floor your rental is one. If your condo requires an entry code to get into the lobby or parking area, be sure to give that to guests before they arrive.
If you do not have a good camera, or are not skilled at this kind of photography, consider hiring a real estate photographer in your area. The cost is a lot lower than you might expect, and the results will be exactly what a would-be renter is looking for.
Don’t neglect to mention any important limitations your property might have, such as being handicap inaccessible, or having limited parking.
When and how much rent the tenant will pay. The duration of the stay. Any specific rules you have for the property (maximum number of occupants, quiet hours, restrictions on smoking, pets, etc. ). It should clearly state that the renter will be liable for damages to the property, and describe the recourse you may take (security deposit, fines, etc. ) if violations occur. It must also specify the kind and amount of notice that must be given by the landlord or tenant to make changes to the agreement or vacate the property. It is possible to get free advice online for drafting these agreements, but consulting with a lawyer is by far the safest bet. [12] X Research source
Some listing sites offer free initial listings and only charge a fee when a reservation is made, whereas some charge an annual subscription fee. Remember that listing fees are tax deductible. You may want to consider listing your rental on multiple sites. While this may cost more in terms of setup time and subscription fees, it will help publicize your property and ensure as few vacancies as possible.
Be sure to vet potential property managers thoroughly. Get recommendations from friends or online, and ask a lot of questions before you decide on a management company. Be aware that for a smaller commission, you can also hire a property manager to perform certain tasks for you, like advertising and booking, while leaving other tasks like maintenance and cleaning up to you. Some people know that they want to use a property manager from the outset, but others choose to take a shot at managing their property themselves at first to see how it goes.
Speak to each potential renter on the phone before accepting the booking. Ask about the purpose of the trip, whether or not the person has stayed in a vacation rental before, and about how many adults and children will be staying. Ask for personal references from your renters, and check them out on social media before you decide. [13] X Research source Online rental sites track reviews not just for properties, but for guests, which might be another incentive to list online. Ask for a deposit. Requesting a deposit that is between 15% to 20% of the rental fee is another way to prescreen guests, and will help pay for damages if they do occur.
