Renting out your home can be an exciting prospect. After all, you will be turning your space into a passive income stream and you will need to do very little to profit from it. However, there are laws to follow and steps to be taken before you can even begin considering renting out your property. If you’re thinking about renting your space, here are three landlord responsibilities that you should know.
- You Must Prepare a Legally Sound Lease for Potential Tenants Beforehand
In order to be able to rent out your property, you must have a legally sound lease or rental agreement prepared for your tenant to sign once they are prepared to move in. This lease or rental agreement will outline all of your tenant’s rights and responsibilities, will detail the amount of time that they will be living on the property, and will provide them with the amount of rent that they must pay in order to rent the property. It also includes the consequences that come with not paying that rent.
Keep in mind that it is very important that your lease follows all the local and state rules and regulations. If you can, try to use a typical outline or meet with a lawyer who is knowledgeable in this area and who can help you craft a legally sound lease for potential tenants. If you include illegal sections, you could risk voiding your entire lease or rental agreement, creating problems for yourself down the road.
- You Must Make Sure Your Space Is Habitable and You are Available to Make Repairs
Although it is a given, you have to make sure that your space is habitable so that your tenant can occupy it without having to worry about their health and safety. If there is a threat to either, they have a right to sue you if anything should happen to them during the course of their rental term. In addition to the issues that arise from poor living conditions, tenants in Michigan have the right to withhold rent payments if a landlord refuses to manage the property and repair important aspects of the household. They may also fix the issues themselves and deduct the costs from their monthly rent payments.
Before you rent out your property, make sure that your space has quality living conditions and that you will be available to take care of the property so that your tenant has a safe and enjoyable experience renting from you.
- Brush Up on Rental Laws Regarding Different Property Spaces
Learning all about the responsibilities that come with renting out a property is going to be no use to you if you are learning about the laws regarding a property that you do not own. For example, you don’t want to start drawing up a rental agreement that pertains to a home when you own a commercial hotel property similar to the Mackinac Island hotel. Before you draft your lease or speak to potential tenants about renting out your space, brush up on rental laws that pertain to the specific property you would like to rent out. You don’t want to create a lengthy rental document only to find out that the laws do not apply to your rental space.
As long as you follow the laws in your area and maintain your property, becoming a landlord will be easy and enjoyable. You can also make the experience faster and more enjoyable by putting systems in place such as a free rental application or a free background check to make it easier to find and attract tenants. Stay lawful and respectful, and renting out property will be a breeze!