Being a landlord in Woodstock, Georgia can be lucrative. You may be able to build long-term wealth through property appreciation and monthly rental income.
There are various reasons to consider renting out your home. You may be moving to another city and don’t want to sell the home or perhaps you want to share the mortgage payments with a roommate. It’s also possible that renting out the home may have been in your plans from the onset.
Whatever the reason, renting out a home involves a myriad of things. You’ll have to price the property right, understand the tenancy and landlord-tenants laws, get the proper insurance coverage, and understand your landlord responsibilities.
Know Your Responsibilities as a Landlord
There are a lot of responsibilities that will fall on your shoulders when you become a landlord.
To start, you’ll need to know how to market your rentals when they are vacant. You’ll also need to have an effective screening process to weed out potentially difficult tenants and keep up with your tenants’ maintenance requests. Finally, you’ll have to know how to manage tenants.
While self-management is an option, it requires that you have some skills, plenty of time, and experience. If you don’t feel equipped to self-manage your rentals, hiring professional help is an excellent option.
Seek the Right Insurance Coverage
Renting out your home to others comes with a certain level of responsibility. A landlord’s insurance policy is designed to offer peace of mind to landlords. Basic insurance helps cover the building for structural damage, as well as minor accidents or injuries that may happen on the property.
Talk to an insurance provider to get the right coverage based on your specific needs. Don’t forget to get multiple quotes and do your research when shopping for coverage.
Price Your Woodstock Rental Correctly
If you’re looking to maximize your rental income, then you’ll need to charge your tenants the right rent. Overcharging will dissuade interested applicants, while undercharging will mean leaving money on the table.
The right rent helps you maximize your income while ensuring the property is competitive in the rental market.
When pricing your home, you’ll need to consider various things like your home’s worth. For best results, hiring a home appraiser is recommended.
The home appraiser will provide you a good estimate of how much your property is worth based on multiple parameters including your home’s location, recent home sale prices, and the home’s condition.
The rent you charge tenants should directly correlate with the current value of your property. In addition, you may also want to look at how much other landlords in the area are charging for rent.
Draft a Solid Lease Agreement
A lease or rental agreement is an important legal document between you and your tenant. You should therefore invest your time, energy, and money into ensuring it’s developed properly.
A good lease or rental agreement is detailed in regards to each party’s rights and responsibilities. Make sure to include the following:
- Names of all adult tenants living in the property.
- Occupancy limits.
- The length of the tenancy.
- The rent amount and all other rent-related policies.
- Amount of security deposit.
- Responsibilities regarding the property’s repair and maintenance.
Understand Georgia Landlord-Tenant Laws
Georgia requires landlords to follow several laws when exercising their responsibilities to tenants. Landlords must adhere to such laws to avoid potential legal conflicts with their tenants. The following are some of the laws:
- The Fair Housing Law requires landlords to treat tenants fairly and equally based on several protected characteristics. The characteristics include race, sex, color, disability, national origin, familial status, and more.
- The state’s Privacy Laws dictate that you must allow your tenants the ability to enjoy their rental units in peace and quiet. While there are no laws on notice requirements, most landlords still do give their tenants a notice of at least 24 hours before entering their homes.
- Security Deposit Rules also specify what a landlord can and can’t do in regards to the tenant’s security deposit. For example, Georgia landlords must store a tenant’s deposit in either an escrow account or post it as a surety bond.
- The Warranty of Habitability also requires landlords to ensure their homes are livable. In other words, they should adhere to the state’s health and safety codes.
Hire a Property Management Company
Self-management can be risky if you don’t have the necessary skills and experience. You may become overwhelmed due to long vacancies, problem tenants, possible evictions, and high-tenant turnover rates.
Hiring a good property management company can be one of the best decisions you can make to ensure the success of your rental. A good manager will provide you with a comprehensive package that can address all your issues, from property advertisement to tenant screening and rent collection.
Renting out a home in Woodstock can be lucrative as long as you do it right. However, many responsibilities come with renting out properties. If this seems daunting you can always hire a property management company for optimum results.
The experts at Haas Properties will be happy to help your manage your rentals keeping you and your tenants comfortable and satisfied!