How to get your property Tenant Ready

[Victoria L.]

Need some advice on getting a property ready for a tenant. We currently live in our house and we are going to use a cash out refinance to buy another property and rent our house out. How well do you fix up the house? For example a backyard we have a huge background but it just dirt. We have so much work to do with the house any advice will help.

Thanks. 

[Penny Clark]

@Victoria L., think of it like a funnel in getting your house rent ready. First, start learning what is necessary to satisfy health and safety codes for rentals in your City/State. You can find this information by consulting your local apartment housing association or state department of consumer affairs. For example, in California, a smoke detector must be inside every sleeping area and must operate on a 10 year battery. Toilets that use more than 1.6 gallon per flush must be replaced.

Second, look at areas of the home, room by room that may be in need of minor repairs: For example, correction of any plumbing leaks or drainage issues, torn window screens, replacement of missing roof shingles, repair of broken or leaking sprinklers, etc. Do a check on the major appliances and HVAC system in the home. It's amazing how the garbage disposal or dishwasher stops working or needs repaired when a tenant moves in and starts using it.

Third, look at the property with a new set of eyes: What features will you highlight? A huge backyard even if it is all dirt may appeal to someone if it is fenced. I wouldn't bother putting in a lawn or do expensive landscaping because tenants cannot be relied on to water the grass or even trees and plants. I also wouldn't put a lot of money into installing expensive counter tops, or lighting fixtures. If you have the extra money, consider replacement of carpet with tile or vinyl flooring  which lasts much longer and is more durable. Generally for your basic B-C class property, renters are looking for more square footage and storage space, amenities that are in good repair and safety and security (exterior lighting, fencing, automatic garage doors, door and window locks that are easy to operate). 

Fourth, add a few decorative touches to make the home more appealing: Place a flower pot full of marigolds or brightly colored welcome mat by the front door; Set a colorful bowl of fruit on the kitchen counter; Install some decorative shelving on bathroom wall; Paint one of the walls in the living or family room an accent color that harmonizes with the rest of the room.

Fifth, learn to live with and accept what that renter does with YOUR house. Many owners who lived in the property prior become upset if the tenant is not treating the home as they would. As long as they are not damaging it (no holes in walls, windows are intact, no major stains on flooring) and keeping it fairly clean that should be enough. After all, it's a rental now.

Congratulations on making the transition to rental owner and share your experience!