If you have some form of house property, you may want to rent it out to others as a form of business or investment. However, there are some things to consider before you hand over keys to the house to prospective tenants.

By renting a house, you can collect the return unused capital to buy, even at a profit. In addition, the house occupied usually more awake and manicured than the house is left empty without occupants, so that its value would be higher.

Rental Rates
The first thing you should know is how much the rent decent housing. Find out in newspapers and other mass media, what is the rental value of similar property standards. After that, ask the agent of the broker to assess the value of the rent that you may receive. This will give you an idea of the value of leases that may be offered.

In addition, there also suggest a simple calculation to estimate the rental value of the house:

The maximum annual rental value = (price of the house + facilities) / 24.
Minimum annual rental value = (price of the house + facilities) / 48.

Value 24 refers to the period after 24 years; house lifetime will decrease the function. While the number 48 means the home lifetime after 48 years was not deemed fit to live, so if the homeowner can rent a house with only the minimum lease price.

Rental process
Meanwhile, for the rental of your home could use the help of real estate broker agent, or do it yourself by placing advertisements in newspapers or by word of mouth advertising.

In order to more easily leased, be sure to check the condition of homes, from the level of cleanliness, whether there is any damage, electrical facilities, drainage, and others. Proper house to live and equipped adequately certainly has a higher rental value.

Prospective tenants
If you already have a range of appropriate rental value of the house, the next step is to assess the prospective tenant’s ability to pay its obligations. Be careful who you decide to rent a house, not to give it to the wrong people.

So that none of the parties who feel harmed their rights, make sure to create a tenancy agreement in writing, signed on the stamp. Refine the most practice also how the payment system in order to avoid difficulties in future.

Do not forget to include important points such as the tenant’s obligation to maintain and care for property, and what sanctions apply if the tenant does not comply with its obligations.

In today’s economy, the letting of property is becoming a viable alternative. In this type of individual real estate transactions to pay the monthly rent to the owner with the intention to buy property within a specified period. A percentage of rental income is used for the purchase of the house.

Rent-to-own real estate transactions typically involve the lease of the property owner for a period of three to five years. Often, buyers are required to pay the owner a deposit of three to five per cent of the purchase price. For example, if the house is valued at $ 100,000 and you pay a deposit of $ 5,000, the purchase contract will reflect a purchase price of 95,000 $.

Then, a percentage of rental income will be applied to the purchase price of the house. This can vary from 5 to 100 percent and will depend on the layout you did with the owner. It ‘rare to find an owner who is 100 per cent of rental income, but not impossible. On average, the owners of more demand by 25 per cent of rental income to the purchase price.

Saying that agrees to pay $ 1000 a month for rent and 25 percent is applied to the purchase price. Each month rent, $ 250 will be applied. If you rent for five years after the contract you must pay $ 15,000 to buy the house. Right now, the final purchase price will be $ 80,000. What this means to you is that you have $ 20,000 in equity in the house you buy, making it easier for you to get traditional financing, the end of the five-year agreement.
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