Deciding to turn your house into a rental property is a big commitment that requires thorough planning and preparation. While rental agents are generally associated with buying and selling homes, some specialize in renting homes and can be hired to make the process easier for you.
Check Your Local Rent Laws
Before hiring anyone to work with you on putting your house for rent, check your local rent laws. Some ordinances and communities have restrictions and may require you to pay rental taxes, register for specific titles, or get landlord insurance. If your house is a condominium or townhome, you may need to refer to your homeowner association rules to see if renting out your place is permissible.
Rental Agent V. Property Manager
You may be wondering what the difference is between a rental agent and a property manager, especially if you’re a new landlord.
A rental agent primarily focuses on the initial stages of renting your house. Their primary goal is to help you find the perfect tenants for your home. Typically, they assist with marketing the property and determining rent. If you decide to hire a rental agent and you are an Apartments.com customer, they can manage your Apartments.com Rental Tools account with their email address. All you need to do is email support@apartments.com with their email address and the rental property address. When they have access to the property, they can manage applications, tours, and contact information.
A property manager has a broader range of responsibilities, including handling ongoing management and maintenance of the property. Property managers manage everything with the property such as collecting rent, legal compliance, and anything to do with maintaining the house. Property managers can have access to your rental house with their own email through Apartments.com Rental Tools. Here, they can manage rent and maintenance requests.
Where to Find a Rental Agent
Here are a few tips on where to start looking for an agent for your rental property:
- Real Estate Agencies: Your first step should be contacting local real estate agencies, which usually have rental departments or agents who specialize in houses for rent
- Online Search: Using online search is an easy way to find rental agents and read reviews before contacting an agent
- Social Media: Join local real estate groups on social media and ask around for recommendations for agents near your house for rent
- Referrals: Asking your friends, family, and colleagues is always a great idea, especially when it’s about real estate. Again, this gives you an opportunity to learn more about an agent before calling them, and personal referrals can be extremely helpful in finding the most trustworthy agents.
How Do Agents Get Paid?
Typically, rental agents are paid via commission, which is usually around 5% to 10% of the rent depending on the rental agent you hire. If you have any concerns, it is best to consult an accountant experienced in real estate as well as local and state laws.
Should I Rent My House on My Own?
You can rent out your house on your own, but it will require time and effort to do so. Consider the following points before you decide:
Renting On Your Own:
- Time and Availability: It’s important to consider whether you have the time and availability, which includes showing the house, screening the tenants, viewing applications, and determining a rent price.
- Your Local Knowledge: Being knowledgeable about your area’s rental market is essential to set a competitive rental price and attract suitable tenants.
- Legal Responsibilities: You should ask yourself, are you comfortable with understanding and adhering to the local laws, lease agreements, and any other legalities associated with a rental home?
Hiring a Rental Agent:
- Experience and Expertise: Rental agents bring expertise in renting homes, which can help you with legal issues. They are also experienced in advertising, showing houses, setting rent, and creating a lease.
- Tenant Screenings: Screening tenants is essential to make sure you’re choosing the right renters. Rental Agents have different ways to screen tenants, which includes credit reports, eviction reports, and even criminal reports.
- Cost of Services: Keep in mind that hiring a rental agent involves additional costs, such as commission and fees, that can impact your overall rental income.
Renting your house on your own is easy with Apartments.com Rental Tools. You can advertise your property, collect applications, create a lease, and even collect rent. But if you decide you need more help, you can always hire a rental agent and even give them access to your rental house on Apartments.com.
Benefits of Hiring a Rental Agent
Marketing your property online takes skill and time. Luckily, Apartments.com Rental Tools allows your property manager to upload photos, amenities, and contact info as well as viewing any applications that come through.
Leave it to your agent to interact with all your prospective tenants. With Apartments.com Rental Tools, they can manage all your applications, messages, tour requests, and calls. They can schedule tours, show the house, answer any questions, and inform prospective renters how to apply.
- They know the market value
When choosing the rent price for your property, you must find a rate that is profitable for you and reasonable for potential renters. A high rate may scare applicants away, while a low price means you may be undervaluing your property. Your realtor understands the market value of your home and can help you set the most accurate rent price. As a landlord, you have access to Rent Comparables on Apartments.com to help you determine and set the right price.
- They screen tenants
Apartments.com makes it easy to screen tenants, get the information you need, and find a qualified renter fast. Unlike our competitors, who use various third-party resources to collect information, we partner with TransUnion to provide you with screening reports for evictions, credit, and criminal history. But if you need more screenings, your rental agent can provide you with more options.
- They can draft lease agreements
Creating a comprehensive lease agreement is a necessary but time-consuming task. If you don’t have an agent, you can easily generate a lease with Apartments.com Rental Tools. Our fully customizable lease agreements are state-specific and legally binding, meaning you can create a lease no matter where your property is located, and it will adhere to all state laws and local ordinances. Once your lease is created, your tenants can quickly sign online. No more hand-delivering paper leases and then trying to find a place to store them! Apartments.com keeps all your leases neatly organized and accessible so you can reference them whenever you like.
- They are helpful with property vacancies
Some property owners have multiple homes they want to rent out to maximize their financial earnings. While this may be a lucrative opportunity to pursue, scheduling, listing, and screening for all these properties can be challenging to do on your own. Apartments.com can help your house for rent stand out and limit vacancies. A rental agent can help simplify the process and use their expertise to make your job a bit easier.
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They can save you time and stress
One of the main reasons you might hire a rental agent is that they can save you time and frustration. They can lead house tours, create lease agreements, and screen tenants. All the work they do means less work and stress for you.
Drawbacks of Hiring a Rental Agent
- You must pay the agent a commission
The main disadvantage of working with a real estate agent is their services are not free. While their pay depends on the details defined in the contract, most earn a commission based on a percentage of the rent. The fee can vary widely, from a percentage of one month’s rent to an entire year of rent.
- You are stuck in a contract
If you are going to work with a realtor, you must commit to the signed contract. Unless negotiated, you must follow the exact agreement terms. This contract might be one of two types:
- Exclusive contract: You can only work with your agent’s brokerage.
- Non-exclusive contract: You can work with more than one brokerage.
If you’re concerned about any kind of contract, it’s best to talk to a real estate attorney.
Important Questions to Ask Before Hiring a Rental Agent
Before you hire a rental agent, it is important to ask them a few questions beforehand:
- How much experience do you have with filling rental properties?
- What services do you provide?
- In general, how long does it take you to fill a vacancy?
- Are there any additional fees you charge?
- What is your process for screening tenants?
- Can you create the lease agreement and manage the signing process for me?
- Can you manage my property after filling the rental vacancy?
Tips for Finding Realtors Who Handle Rental Homes
Here are a few tips to help you find and narrow down your selection of realtors who specialize in rental homes:
- Ask for referrals from family, friends, colleagues, and other property owners and landlords
- Check and compare online reviews for different rental agents
- Make a list of the potential rental agents who fit your needs the most
- Consider how much it may cost you to find a tenant without the help of an agent
- Compare rental agent fees
- Verify your prospective rental agents are certified or licensed
- Familiarize yourself with the renting process agents use
- Arrange interviews with the rental agents you like best
Whether you decide to use an agent or not, Apartments.com Rental Tools can help you with applications, tours, screening, and even payments, making the leasing process a lot easier.
