How to lease your home? If you decide you want to lease your home instead of sell, there are a few “best practices” you will want to take into consideration.
The top priority when leasing your home is to find a tenant that you like or can at least get along with on a professional level. Remember, you are going to be in a relationship with this person for six months, a year, or two years. Personalities, character and integrity really matter in a tenant-landlord situation. When you sell your home the relationship with the Buyer ends when deal closes, in a lease the relationship begins when the lease starts.
To that end, you will want to look at a person’s credit, character and assets before signing an agreement. People that possess all three of those attributes tend to pay their bills. Sometime you will find a potential tenant you like, but he or she may be lacking a bit in the area of credit. You can compensate for that a couple ways, either by getting all the money paid up front or by getting a strong co-signer.
If the home is going to be furnished, you will want to take an inventory of everything on the property. This will help alleviate any potential conflicts down the road. An inventory can be done either by writing a list of everything or by taking photos and/or video of the property.
Finally, if you decide to lease your home you will want to be in contact with your accountant. When you lease a home there are tax ramifications and you want to make sure you are using the best strategy available.