Do you need to move in a hurry? Maybe you have a new job and you need to relocate? Many people come in to our office asking how to rent out their house and to do it safely. Renting out your house can be especially terrifying if you are thinking of coming back to the house as your primary residence in the future. I have heard lots of horror stories of coming back to a trashed house and incurring a lot of clean up bills.

So how do you safely rent out your house?

Check your local permitting requirements before renting our your house. The first thing you need to do is to make sure there are not permitting requirements for where you live before renting out your house. There may be zoning restrictions or use restrictions that prevent what you are allowed to use your house for. Or maybe you live in a Homeowner’s Association that places restrictions on leasing out your house. Either way, you do not want to be in a scenario where you rent out your house and get a notice that you are in violation of some law. If this happens, you may be out all the rent money that your tenant paid if they get kicked out. You may also owe money to the city or county you live in. A good real estate lawyer knows the local zoning and use restrictions and can make sure you are compliant with local laws.

Make sure you get insurance before renting out your house. Things happen. Fire, flooding, and criminal activity are a few examples of things you may not see coming. The best thing to do before renting out your house is to make sure your homeowner’s insurance covers renters. That way if things go south you can reach out to your insurance company to get the house back in shape. You can also turn to your insurance company if the tenants are complaining and you do not have the money to make repairs. For example, you are required to keep working heating and cooling for your tenants. If your AC breaks you may need to have your homeowner’s insurance pay for the repairs. Talk to your insurance company to make sure you have the right insurance to cover any issues that come up.

Work with a property management company. A property management company is a company who specializes in managing rental properties for home owners. These companies are familiar with local rules and regulations and can make sure you are fully compliant and not getting sued by your tenants. They can also remove a lot of anxiety associated with renters as they will be the ones answering complaints and making repairs. The only downside of a property management company is they may take a portion of the rent money to manage the property for you. This is still a great investment as you no longer have to deal with the tenants. They can also help with the eviction process if a tenant is not paying rent.

Thoroughly vet your prospective tenants. If you want to be a landlord you need to make sure the people you are renting to will not damage your property or run off with something. Vetting your tenants is an important part of the rental process. You can potentially run background checks or check court records to see if your prospective tenants have been sued by prior landlords. This is also something that your property management company can help with. Property management companies usually have experience running these checks and can tell you if your prospective tenant is a trouble tenant.

Get a good lease. First and foremost, you need a lease agreement. A lease agreement is a contract between you and the tenant which outlines who is responsible for what utilities and maintenance of the property. A good lease agreement will make sure that the tenant continues to maintain the property while you are gone. The last thing you want is a citation for trash collection or inoperable vehicles on the property. Setting expectations in writing can also protect you in court if you need to go after a tenant for damages. A lease agreement can allow you to recover the cost it takes to go to court and can prevent unwarranted law suits. Having a real estate lawyer can help you make sure you have the best possible lease for your scenario. Your lease agreement can also require the tenant to have renter’s insurance to cover any unforeseen issues.

Check in with your tenants. Occassionaly checking in with your tenants, although not required by law, can help in the long run. If your goal is to keep a good tenant in the property and not have to run a background check every year, checking in with your tenants with a letter can be helpful. It can also encourage conversation if there are needed repairs.

Talk to a real estate lawyer. Finally, make sure you know a local real estate lawyer. They can help if you need to handle the eviction and advise you as issues with your tenant comes up. If your tenant skips town or damages the property your real estate lawyer can also help you go after the tenant.