Investing in rental property can be a great way to diversify your portfolio and earn passive income. That being said, it’s not a simple process. It has many elements which you’ll have to get right to be successful.
Not sure what’s required to get into the rental business? No worries! In today’s article, we’ll walk you through the step-by-step process of how to rent out your Reno home.
1. Understand the Required Skillset
Anyone can own rental property, but becoming a landlord is a different story. Being a landlord requires a certain set of skills and knowledge. So, if you’re new to the field, you may want to reconsider self-managing your property.
One must-have skill for any landlord is the ability to find quality tenants. Do you have a strategy in place that ensures you rent out your property to a reliable tenant? A reliable tenant is one who pays rent on time, cares for the unit, and notifies you when there is a maintenance issue, among other things.
On the topic of property maintenance, another necessary skill is being able to keep up with maintenance requests. Will you be able to respond at odd hours? Have you built any relationships with local contractors and vendors who can address repair and maintenance issues?
How you answer any of these questions can determine whether or not you are up to the task of self-management. If you find that you still have some learning to do, then hiring a professional property manager can be the best option for you.
A good property manager will have the skills, experience, and resources to manage your Reno rental. Get in touch with a reliable property management company like Evolve Nevada!
2. Create a Solid Lease Agreement
You’ll need to create rules and policies that safeguard your investment interests.
Will you allow your tenants to sublet their rental unit? If so, then it’s important to be clear on your rules for this. For instance, they should seek your approval prior to subletting.
Will you allow pets? Pets are another thing you’ll need to consider when renting out your property. That’s because a significant number of renters are pet owners. As a matter of fact, a recent study indicates that over 67% of Americans have a pet!
Additionally, what about rules on changes to your property’s appearance? Will you allow your Reno tenants to, for instance, repaint their rentals with their preferred colors?
When creating the lease agreement, remember one thing: you won’t be able to hold your tenant accountable for something they have no knowledge about. So, make sure to include as many rules as possible to protect yourself and your property.
3. Fix Any Issues Before Advertising Your Property
Quality tenants don’t just rent any property. They rent quality homes. This is especially true in a down market, where renters have a ton of options to choose from, and more options mean higher expectations by tenants.
In a competitive market space, standing out is key. Start with the curb appeal. Does the exterior of your property leave a good impression? If not, you can revamp its look by adding flowers, removing weeds, or painting the front door.
You also don’t want to forget about fixing any potential property issues. You should ensure that everything is in working order before showing your property. The last thing you want is for a potential tenant to ask about overhead lights that won’t turn on or notice a leaky faucet.
4. Price the Rental Unit Correctly
Pricing the unit right is also a key aspect of making your property ready to rent. Overcharging may seem good on paper, but it will turn out to be counterproductive for you. Prospective tenants carry out research before renting a property and will consider alternative options if they spot an overpriced one.
Undercharging is also not good for your bottom line. You won’t be able to maximize your investment returns if you choose to charge too low.
To determine the right rental price, conduct a comparative market analysis. Check how much similar rental units are renting for. Alternatively, hire a reputable property management company like Evolve Nevada to help you with the calculations.
5. Familiarize Yourself with Nevada Rental Laws
All 50 states have laws in place that guide the relationship between landlords and tenants. It’s vital to know these before renting out your property.
The following are some of the laws you should know about:
- Landlord entry laws. Landlords in Nevada are required to give their tenants a notice of at least 24 hours prior to entry. The only exception to this is in case of an emergency
- Security deposit laws. Under Nevada landlord-tenant law, landlords must charge no more than 3x the monthly rent as the security deposit
- Fair housing laws. Nevada prohibits discrimination based on a person’s color, race, sex, disability, age, religion, sexual orientation, and national origin
- Eviction laws. You must evict a tenant based on a legal reason, for example, when the rent is late. Additionally, you must follow the exact eviction process. Locking a tenant out, removing their belongings, or shutting down their utilities are illegal eviction methods
These are only a handful of laws you’ll be required to know about when renting out your Reno home.
6. Hire a Good Property Management Company
If you’ve never had a rental property before, your best bet at running a successful investment is by hiring a professional. A good property manager will have the needed experience and will have acquired all the necessary skills and knowledge to run a successful investment.
With a property manager by your side, you won’t have to worry about vacancies, rent collection, property maintenance, or even the legal aspects. You can enjoy having free time without stress!
Evolve Nevada is a full-service property management company that can handle all of these tasks for you. Get in touch with us today to learn more about our property management services!