Is For Rent By Owner the Best Option to Rent My Property?
For rent by owner has been simplified because of the availability of property portals for listing homes for rent. These portals have allowed homeowners to advertise “my place property” on digital media and attract the interest of potential tenants.
Why does a homeowner need to advertise his property on digital media?
Technological innovations have transformed the tenant behavior drastically in recent times. The tenants of today prefer to take decisions regarding homes by looking at several properties. Tenants of today have become more demanding than before. They would like to take decisions after they have shortlisted properties that meet most of their criteria for selection.
The online method is the most optimal for their purpose. They do not have to visit different properties to select one.
They can compare various listed properties from the comfort of their home at the time of their convenience.
They can apply filters according to their criteria and easily view properties matching their requirements.
They prefer to connect directly with homeowners instead of connecting through real estate agents as it helps them save on the agent’s commission.
When the tenants are looking online for properties to rent, if a property is not advertised online, it will miss a good deal in this competitive market.
Whether it is an agent or the owner trying to rent out a property, the property must be advertised online to attract the attention of the tenants.
Many home-owners depend on real estate agents for renting out their homes because they believe that it is an uphill task.
Finding a tenant for home some years ago was a daunting task because it was difficult for home-owners to connect with tenants. The only way they could advertise their vacant home was by placing advertisements in the newspaper and “To-Let” board in the yard. This had a limited reach and as a result, it was difficult to rent out the home. At such times, the only way to rent out the property was with the help of a real estate agent. The agent had a list of tenants looking for homes; he had his network with the help of which he could find tenants for the property.
But if we look at the current times, a real estate agent uses the same method to connect with potential tenants that an owner can use. Both need to advertise the home online!
Therefore there is not much of a difference in the approach used by an agent and a property owner for renting out a home.
All that a home-owner needs to do is to step into the shoes of a real estate agent and he can rent my place property. And, this means that he can save a substantial amount that he would have paid the agent as a commission.
How to achieve for rent by owner?
For rent by owner can be achieved by following a few simple steps:
Step 1: Make your Home Market Ready
Make your home ready for the market by getting rid of the clutter, getting all the necessary repairs done, and painting the house if required to give it a fresh new look.
Step 2: Fix the Rent
This could be a little difficult if you are renting out your home for the first time. However, you can fix the rent by understanding the real estate trends and researching the rents of similar homes in the vicinity.
It is always a good idea to quote a slightly higher rent than your expectation to have room for negotiations.
Step 3: List your Home
The next step is choosing a genuine website for listing your home. Listing entails uploading a description of the property, good quality photographs, and a virtual tour of your home on the site. This helps the potential tenants get an idea about the house which will help them decide on the property.
Step 4: Market your Property
You will need to advertise your property extensively so that you can attract the attention of potential tenants. The market is highly competitive. Therefore, effective marketing is essential to have a competitive edge.
Your choice of the website is a crucial factor. You need to choose a website with high visibility. Also, you will need to share your listing on social media sites so that your listing gets maximum exposure.
Step 5: Connect with Tenants
Potential tenants will connect with you directly and you can take them for viewing the property.
Step 6: Negotiate the Rent
Negotiate the rent for the home with the tenant and fix the rental.
Step 7: Conduct a Background check
Conduct a background check to verify the profile of the tenant, his financial status, etc. Once you are satisfied, go to the next step.
Step 8: Draw the legal contract
You will need to draw the rental agreement that adheres to the laws of the land. You will need to include any terms and conditions you may have in mind. It may be a little difficult for you to know the legalities; it is a good idea to take the help of a legal expert for drawing up the contract.
Step 9: Close the deal
These are the basic steps for rent by the owner. It is not a very complicated process but it requires your focused attention and time. When you rent out your home without an agent, you are in complete control of the process. Besides, you save on the agent’s commission.
Although it may seem a little difficult for the first time, you can learn from your first experience and subsequent renting will become easier. And, it is better that you rent without an agent because otherwise every time you rent out your property, you will need to hire an agent and each time you will have to pay him a commission. Once you have the property for rent by owner process in control, you can rent my place property without paying an agent.
