If you own a second home, you will certainly have asked yourself many questions before deciding to rent it. Of course, having an income from this property is important for your insurance projects and not to bear all the expenses related to the property, but you will certainly have also thought about the risks and troubles that could arise from renting a house to a stranger, especially risks connected to the failure to pay the fees and bad management of the property by the tenant.
Precisely for this reason, it is important to put in place a series of precautions and safeguards to rent your property while remaining calm for the entire duration of the contract.
Here are our 10 tips for a hassle-free home rental:
- Select the tenant
- Apply for a policy to guarantee contractual risks
- Ask for the security deposit
- Choose the type of contract that suits your needs
- Sign a delivery report
- Establish notice periods for the tenant to re-let without haste
- Insert condominium or management rules compliance clauses
- Indicate precisely how many people will be able to occupy the property and prohibit subletting
- The tenant has his rights, respect them and you will keep good relations
- Better to rely on a professional
1) SELECT THE TENANT
Don’t stop at the first impression, getting to know the person who would like to rent your home well is an important first step to understand:
- who will go to live in your house
- what perspectives of permanence there are, transitory reasons for work or other
- if it is reliable from an income point of view, inquiring about the presence of negative information
- if it has references from people you know or references from the previous homeowner
2) REQUEST A POLICY TO GUARANTEE THE CONTRACTUAL RISKS
Insurance companies offer policies suitable for covering the risks deriving from lease agreements such as non-payment of the rent, damage to the property, and legal costs to manage eviction procedures. We suggest that you ask the future tenant to take out a policy of this type, the company will carry out a series of checks on the subject to your advantage.
3) ASK FOR THE SECURITY DEPOSIT
The security deposit is a guaranteed sum that the tenant pays into the hands of the landlord at the time of signing the contract. Normally the sum corresponds to 2 or 3 months of rent, an amount that must be returned to the tenant at the end of the lease, deducting the quantification of any damage caused to the property. It is important to receive this guarantee for several reasons: it constitutes a good incentive for the tenant to manage with care and attention the house that has been rented to him, it is an amount that you have already collected to cover the costs to repair any damage if it allows you. to verify that the tenant has the minimum financial capacity to meet the obligations of the contract.
4) CHOOSE THE TYPE OF CONTRACT SUITABLE FOR THE NEEDS
Is your home fully furnished, semi-furnished, or empty? Do you want to rent for a long period or do you prefer short rentals? Do you want to experience the Air B&B channel?
Every aspect must be considered to choose the type of contract that best suits your needs, minimize risks and maximize net profitability by containing taxes.
Today essentially these types of contracts exist:
- Temporary lease, with a maximum duration of 18 months to meet the documented needs of the tenant or landlord.
- Minimum rental duration 4 years + 4 years. It is the most used type of contract, also called “free rent”.
- Lease with agreed fee lasting 3 years + 2 years. As an alternative to the “free” rent contract, Law 431/1998 provides for the possibility of stipulating “agreed” lease agreements, in compliance with the conditions provided for in specific agreements between small owners ‘organizations and tenants’ organizations. This type of contract offers the possibility of opting for really advantageous taxation by opting for the flat rate coupon at 10%.
5) SIGN A DELIVERY REPORT
It is not an excessive scruple to sign a detailed delivery report, on the contrary, it is a fundamental step to reduce the possibility of disputes between the owner and tenant during the return phase of the property. In the report, in addition to listing the goods with which the house is equipped such as furniture and appliances, the conditions of conservation of the property must also be reported upon signing the contract.
6) ESTABLISH TERMS OF CANCELLATION FOR THE TENANT SUITABLE TO RE-RENT WITHOUT HURRY
While the lessor can give notice of termination of the contract, with due advance, at each contractual expiry, the tenant can give notice of termination at any time with a notice established between the parties. Normally the notice is set at 6 months, but it can also be defined with a shorter term. We advise you not to include terms of less than 3 months in the contract, because otherwise, you would risk not having enough time to find a suitable tenant for the next contract.
7) INSERT CLAUSES OF COMPLIANCE WITH CONDOMINIUM OR MANAGEMENT RULES
While not responsible for the tenant’s behavior, the owner must always inform the tenant about the condominium rules so that he can adopt suitable behavior.
8) INDICATE PRECISELY HOW MANY PEOPLE WILL BE ABLE TO OCCUPY THE PROPERTY AND PROHIBIT THE SUBLEASE
Always indicate in the contract the number of people who will live in the house and their details. This, in addition to the no subletting clause, will allow you to have some control over attendance and if the tenant abuses the house in this sense, to have a reason for serious default to use if you want to request eviction.
9) THE TENANT HAS HIS RIGHTS, RESPECT THEM AND KEEP GOOD RELATIONS
A relationship of good collaboration between the parties also involves respect for the rights of each one. Keep in mind what your rights are as a landlord, but remember that the tenant has their own too! Do not fail to intervene for the maintenance that competes with you but be firm on expecting your tenant to carry out what he is required to do.
10) BETTER RELYING ON A PROFESSIONAL
If you don’t deal with leases daily, you don’t know perfectly the rules governing contracts and you don’t know how to orient yourself on the type of contract that best suits your needs, you don’t have to risk! Contact a Puntocasa real estate agent, he will advise you in the best possible way and will manage each step with competence and professionalism.
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