There are so many reasons why a homeowner would want to rent out your house, from job relocation to the need to upsize or downsize a rental property. You may also want to hold on to your Nashville rental property longer in anticipation of rising property values. But no matter the reason for doing so, renting out your house does come with some great benefits.
You may be able to gain cash flow, tax savings, and increased wealth through rising home values, along with deductions like mortgage interest, all while securing a solid lease agreement with your tenants.
This includes understanding the terms of the lease, ensuring the lease is compliant with local laws, and regularly reviewing the lease to adapt to any changes in landlord-tenant laws and rental regulations.
Additionally, it’s important to account for ongoing expenses related to maintaining the property and complying with legal rules and regulations, while also protecting yourself legally by adhering to the lease agreement and local laws.
If you plan to manage the property yourself, you’ll need to consider your mortgage obligations and ensure that you can handle any unexpected repairs or tenant issues, while also ensuring that you comply with all necessary regulations and rules.
But for landlords to enjoy these benefits, they’ll need to get some things right. Being a property owner present a challenge as it comes with a lot of responsibilities. Which is why, in today’s blog, we at Brentwood Square Management will walk you through 7 tips on how to rent out your Nashville rental property successfully.
Understand Your Role as a Landlord
First things first, landlords need to understand what they’re getting into, as being a property owner goes beyond just receiving rental income from a tenant or signing a lease agreement.
It also involves important responsibilities, such as ensuring tenants pay rent on time, ensuring tenants pay rent consistently, managing property maintenance, understanding tax deductions available for property owners, and complying with landlord-tenant laws.
One key responsibility you’ll have as a property owner is screening renters, which is crucial in ensuring that you land the right renters for your house. A good tenant screening process is one that qualifies tenants based on their income, credit rating, employment history, rental background, and criminal history.
Additionally, you should consider factors like the rent price in relation to the tenant's ability to afford it, as well as how property taxes might affect your overall rental income. Renting to the right tenants is key to a smooth rental process and managing your house effectively. When it comes to lease agreements, being thorough with tenant selection will help ensure the success of your house rental.
You should also be cautious of the questions you ask prospects when screening them. The Fair Housing Act requires that landlords steer clear of anything that discriminates against tenants on the basis of the 7 protected classes: race, color, religion, nationality, familial status, gender, and disability.
Other responsibilities you have as a landlord includes:
- Marketing your vacant unit.
- Collecting rent every month.
- Responding to maintenance issues.
- Dealing with tenant’s complaints.
- Providing financial reports.
- Carrying out routine maintenance.
- Understand your legal obligations.
Tennessee landlords have certain legal responsibilities under Tennessee law (Tenn. Code Ann. Title 66, Ch. 28). Other legal obligations you’ll have as a Tennessee landlord include:
- Providing tenants with mandatory disclosures.
- Observing the landlord entry rules.
- Observing restrictions on “visual clutter” and inoperable automobiles on the premises.
- Observing the provisions of the Fair Housing laws.
- Following the proper eviction procedure when removing a tenant.
Get the Property Rent Ready
Now you can start readying your Nashville property for renters after understanding your obligations. Basically, you’ll need to make sure that your property looks attractive in the eyes of potential tenants. Here are some tips to help you in this regard.
- Give the home a thorough clean.
- Repaint tired looking walls.
- Revitalize the yard.
- Get rid of personal items.
- Take care of all repairs.
- Make any renovations you feel are right.
Marketing the Property
Now with the rental properties looking great, you can start looking for a tenant to occupy the home. While signs may have worked in the past, that isn’t the only method to successfully advertise a home.
You’ll need to market your property in a variety of ways: bulletin boards, social media, and rental listing sites. Of course, the more marketing platforms you use, the more the exposure your property will gain!
Make sure to draft an enticing rental ad that will have a high click through rate. It should include high quality photos, a walk-through HD video, as well as a detailed (yet concise) description of the property.
Screen All Prospective Tenants
A great landlord should be selective when it comes to their choice of tenants. Pick a tenant that earns sufficient income, has a good credit rating, and has a good rental background, among other things. Ensure that your property is well-maintained, and repairs are made promptly to keep the property in good condition for your tenants.
Additionally, make sure to abide by the Tennessee Fair Housing Act. Treat any prospective tenant equally and fairly regardless of their race, color, religion, disability, familial status, nationality, and gender.
Keeping up with repairs and addressing any maintenance issues quickly is also part of your responsibility as a landlord, helping ensure a positive experience for both you and your tenants.
Determine the Right Rental Price
The right rent is one that is neither too high nor too low. You may be able to determine this by doing a couple of things. Including, carrying out a comparative marketing analysis or hiring a professional to do it on your behalf.
Ideally, the right rent amount should be about 1% of the purchase price of the property. If the purchase price is $150,000, then the monthly rent should be about $1,500.
Hire a Property Management
If you’re just starting out as a landlord or have an increasingly growing investment portfolio, hiring a professional may be the best management option for you. Good property management companies can help you manage all aspects of your investment property, including writing the lease agreement and handling your property’s listing.
Property management companies can help you market your property extensively, create compelling listings to attract potential tenants, screen tenants, collect rent on time, maintain your property, and more.
Bottom Line
Being a landlord can provide you immense financial rewards. But to obtain them, you must get the job right. That said, even if you lack the necessary skills and experience, it doesn’t mean that you can’t run a successful investment property.
You have the option of hiring a property management company. Brentwood Square Management Services, Inc. provides full-service property management services to property owners in Nashville. We’re ready to manage your investment portfolio for you regardless of its size. Get in touch with us to learn more!
