Are you looking to rent out your New Hampshire home instead of selling it? If you are, being a landlord could provide you with certain wealth-building opportunities!
You could, for instance, earn a recurring passive income for many years to come. And this income could come in handy when trying to offset a loan or boost your savings for your next investment. That said, renting out a property isn’t a surefire way to financial freedom. Just like any other investment, you’ll have to get it right.
The following are 6 tips on how to rent out your house in New Hampshire successfully.
Understand What Being a Landlord Entails
While being a landlord can be financially rewarding, there is a lot that comes with the job. It’s important to understand your roles in order to set yourself up to reap the potential financial benefits.
For starters, the following are just some of the responsibilities that come along with being a landlord in the state of New Hampshire:
- Abiding by the lease and all the relevant local, state, and federal laws
- Collecting rent when it becomes due
- Filing taxes diligently on time
- Staying on top of repairs and maintenance issues in your rentals
- Marketing the property when it becomes vacant after a tenant leaves
- Screening prospective tenants
Get Your Rental Home Ready
As a savvy landlord, your goal should be to rent to quality tenants that help you maximize your income. These are tenants that care for your property, abide by all terms listed in the lease agreement, and pay rent on time, every time, among other things.
But you see, quality tenants are choosy when it comes to the property they want to rent. If your house looks like it has seen better days, it’ll be hard to attract high-quality tenants. Quality tenants want to live in a home that:
- Is clean, clutter-free, and meets sanitary standards
- Has working appliances
- Is secure and safe
- Has no pending repairs or maintenance needs
- Has the right amenities like additional storage and modern appliances
What’s more, New Hampshire landlord-tenant laws require that landlords rent out habitable homes. That is a home that meets all the basic health, safety, and structural codes.
Know Your Legal Responsibilities
New Hampshire law kicks at the moment a lease or rental agreement is established by both a landlord and tenant. Luckily for you, New Hampshire is fairly landlord-friendly. Among other things, the state doesn’t impose rent control rules or limit landlords from charging certain fees.
That said, the following are some of the legal responsibilities that come with renting out your house in New Hampshire:
- Provide habitable premises and respond to maintenance requests within 14 days
- Follow the state’s eviction process when removing a tenant from their rented premises
- Only enter the property after serving a proper written notice
- Provide your tenant with certain mandatory disclosures prior to signing the lease
- Abide by the statewide security deposit laws
Abide by the New Hampshire Fair Housing Act by treating all tenants equally and fairly regardless of certain protected classes. The classes are race, color, nationality, religion, sex, familial status, disability, marital status, age, and sexual orientation
Advertise the Home to Attract Prospective Tenants
Once the property is ready, start the marketing process immediately. This can benefit your bottom line by keeping vacancy costs as low as possible.
The rental marketing process is multi-fold. First, you need to write a rental ad. You must ensure it’s enticing in order to attract prospective tenants. Make sure to include high-quality photos and a video walkthrough. This will help a prospect get a better idea of what to expect, thereby increasing your chances of landing a quality tenant.
Next, you must start the distribution process. You can do this by using rental listing sites like Trulia or Zillow, posting on social media, putting up flyers on community bulletin boards, or using word-of-mouth.
Alternatively, you can also just hire a reputable property management company to do the marketing for you. This will not only save you valuable time but will also ensure the process is done right the first time.
Screen all Prospective Tenants
Don’t make the mistake of renting to just any prospect that shows interest in renting your New Hampshire rental property. The results can prove to be potentially devastating to your bottom line. Always require that all rental applicants undergo a mandatory screening process. At the very minimum, only consider tenants who have the following:
- Sufficient income – Only consider tenants making at least 3X the monthly rental price. For instance, if the rental price is $1,200, then only consider those making at least $3,600 a month
- A good credit rating – You want one that’s at least 650. Of course, the higher the better
- A good rental history – Call prior landlords to inquire more about a tenant
- No prior relevant criminal convictions – Conduct a backgrounded check but ensure that you follow proper procedure
- No prior records of eviction – You can check their rental history and contact their references
And after landing a tenant who meets the aforementioned requirements, require them to pay a security deposit. The security deposit in New Hampshire must not exceed the amount of one month’s rent.
Hire a Property Management Company
Being a landlord comes with a lot of responsibilities. If you’re just starting out, hiring an expert to manage your New Hampshire house can be the best way to go. A comprehensive property management company can help you market your home, screen prospects, collect rent, and respond to maintenance issues, among other things.
Being a landlord has its perks. However, to enjoy them, you need to be on top of your responsibilities and ensure that the property meets rental regulations. Hiring an expert can be a great option if you find this daunting.
Keyrenter New England has over 15 years of property management experience in New Hampshire. We can help you minimize stress and maximize your income. Get in touch to learn more!
Disclaimer: The information in the blog post should only be used for educational purposes and not as a substitute for professional legal advice from a licensed attorney.