| What is the process that you have to go through when you rent your house out i |
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Melody
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If l wanna rent my house out after l get married what rules do l have to go by concerning my morgage company, insurance, contract, etc?
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beert394
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1. find renter 2. take theer munee
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Starnr
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You do not have to involve the mortgage company. Buy a standard rental agreement, check the applicant is credit, get a month is rent plus one month is security deposit. Do a walk-through with the renter, making notes of any existing damages because u will have to do another walk-through when he leaves. As for insurance, ur current home owner is covers the residence. If the renter wants insurance for his belongings he gets that himself. You know of course that u must report the rental income on ur income taxes.
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zof943
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You do have to have a certain type of insurance on a rental that covers damages, liability, etc. Contact ur homeowner is insurance company & find out what they recommend for coverage. l go through Traveler is for my primary residence and, for an extra $25 a year, the liability coverage on my primary residence covers my rental property.
You do not have to involve the mortgage company or notify them about anything. When u got the mortgage, they had u fill out on a form that u intended to occupy the property. And, at the time, u did. But, now u changed ur mind & you're renting it out. That is none of their concern.
Regarding the screening of applicants, contracts, etc., consider retaining a property management company. l used one to find my tenants. They charged nothing to advertise the property, screen applicants, show the property, etc. But, l am locked into a 1-year agreement with them for 8% of the rental payment. After that, l can keep the same tenant & renew their lease, but l can drop the management company.
For me, the convenience of not having to find the tenant & not worrying about a problem tenant (the management company is professional about doing this) is well worth the money l pay them. Besides, the management fee is tax deductible.
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