Leaving a vacant property can come with problems, some of which include:
- High landlord insurance costs
- Squatters
- Fire
- Theft and vandalism
- Leaks and water damage
If you own a vacant property, consider turning it into a rental property! Renting out your Albuquerque property can prevent these problems, as well as help you earn a passive income. You may also be able to increase your wealth and income through potential property appreciation rates.
The following are some tips to help you when you are renting out your house.
1. Know Your Responsibilities.
Both rental property owners and renters have certain obligations under a residential lease agreement. As a landlord, the following are some of the obligations that you must abide by when renting out your home.
- Fill vacancies when a tenant leaves.
- Screen prospects to choose the right one.
- Collect rent and handle any issues that arise.
- Maintain the unit by making necessary or requested repairs.
- File property taxes during the tax season.
- Handle landlord insurance.
- Abide by all local landlord-tenant laws.
2. Draft A Lease Agreement.
A lease agreement is a legally binding contract between tenants and landlords. Lease agreements can help you highlight the expectations you have for your tenant. It’s important that you create a good rental contract to prevent potential issues down the road.
For example, you may use the lease to inform prospective tenants about the pet policy in your properties. In the pet policy, you may include restrictions on the size, type, and number of pets allowed in your rentals.
Also, you may use the lease to let prospects know about your subletting rules.
Other important clauses landlords may want to define in the lease agreement include smoking rules, maintenance responsibilities, and alteration rules for your rentals.
3. Get The Home Ready To Rent.
Naturally, good quality tenants will want to rent a rental home that is desirable. The state of New Mexico, just like other states in the country, requires that landlords provide tenants with a property that abides to certain basic safety and health standards.
In addition to that, you can make your rental property more enticing to prospects by doing the following.
- Give it a thorough clean.
- Spruce up the curb appeal.
- Repaint the walls.
- Ensure all appliances are working.
- Make all required repairs. Such as, replacing burnt out bulbs.
- Depersonalize the space and get rid of clutter.
- Check for pests and have them removed if any are found.
4. Determine The Proper Rent Amount.
This part of renting out your house requires a balancing act. If you price it too high, it may scare away potential tenants. If you price it too low, you may not cover your expenses.
The right rent price is one that is able to meet two things. One is that it is able to keep your rental property attractive. Two is that it is able to ensure you cover your expenses and maximize your rental income.
As a general rule of thumb, the right rent should be able to abide by the One Percent Rule. According to the rule, the monthly rent amount should equal one percent of the value of your rental house if you were to sell it.
For a perfect estimate, consider if you should hire a professional property management services. A good property manager will run a comprehensive rental market survey and consider all other factors in efforts to set the right rent price.
5. Understand The New Mexico Landlord-Tenant Laws.
The landlord-tenant relationship must be professional. It is recognized and protected by both state and federal laws. The local laws give both parties certain rights and responsibilities.
Some of the obligations NM landlords obtain include the following.
- Provide a property that abides by the habitability laws.
- Follow the proper eviction process when removing a tenant for violating the terms of the lease.
- Abide by the state’s security deposits rules. For example, return the tenant’s security deposit (or whatever remains of it) within a period of 30 days after a tenant moves out.
- Treat each renter equally and fairly as per the NM Fair Housing Laws. Protected classes in the state include race, color, nationality, gender, religion, gender identity, sexual orientation, ancestry, and spousal affiliation.
- Provide your renter with a 24 hours advance notice prior to entering the rental properties.
- Provide your renter with certain required disclosures, such as on lead-based paint.
6. Market The Property.
Part of a solid property management plan is marketing. If you have done all the prior steps, you may now be ready to rent out our Albuquerque property. This includes a process of steps.
- Step #1: Create a rental ad or rental listing. Include quality photos and a great property description.
- Step #2: Distribute the rental ad to both conventional and traditional avenues.
- Step #3: Carry out the property showing.
7. Screen Potential Tenants.
To maximize your rental income and avoid potential issues down the road, screening tenants is key. An effective tenant screening process is one that qualifies prospective tenants on the basis of their income level, credit rating, and rental background, among other things.
Doing so can maximize your chances of landing the right tenants and limiting any liability. That is, a person that makes timely rent payments, cares for your property, notifies you of maintenance issues, and rents long-term.
Bottom Line
Renting out a house in Albuquerque can be great for your bottom line. However, to be a successful landlord, certain things have to be done right. If you still find any landlord responsibilities daunting, Blue Door Realty can help.
We’re a professional property management company serving the Greater Albuquerque, NM area. We service the areas of Rio Rancho, Albuquerque, Bernalillo, Corrales, and Placitas. Get in touch to get started!
