What you need to know about home rental

From Buyincomeproperties.com

Rentals
What you need to know about home rental
By
Jul 5, 2006, 18:34

Would you rather rent your home than buy? Do you think that the advantages of renting far outweigh those of taking out a mortgage? If this sounds like you, you are not alone. There are a lot of people that would rather look into a home rental than buy a home. In fact, the home rental industry is taking off fast. This is due in large part to the number of people that would rather rent than buy, but at the same time investors are contributing to this trend as well. They are purchasing real estate, such as foreclosures, and then selling then renting them out to the public as a way of setting up an additional stream of income.

If you are interested in home rental, you need to know exactly what you are getting yourself into. Even though the commitment is not quite as big as buying a home, you will still want to make the right decision when choosing a home rental. Some tips that will help guide you through the home rental process are as follows.

1. When you are renting a home make sure that you do not overextend yourself financially. In other words, do not sign a lease that you cannot possibly live up to. By doing this you are only going to be putting yourself in a bad position, and possibly end up getting evicted.

The best way to ensure that you do not overextend yourself financially is by knowing how much you can afford, and then staying within your budget. Make sure that you know exactly how much you are going to have to pay each month for your home rental. Do not forget about utilities when you are estimating your monthly cost. Your landlord should be able to give you a good idea as to how much you will have to pay each month on utilities.

2. A home rental does not do you any good if it does not suit your needs; even if it is a good deal. Make sure that you are only looking at home rentals that you would consider moving into. This way if one of your deals falls through you will always have something else to fall back on. Many people fail to do this, and end up with a home rental that does not suit there needs.

3. When you are signing your home rental lease make sure that you know exactly what you are getting yourself into. If you have any questions whatsoever make sure that you get them clarified before signing on the dotted line. If you do not, you may end up having a dispute with the landlord when a problem arises. Do not feel stupid asking questions, it is the only way to ensure that you get what you want.

Just like buying a house, when you are dealing with a home rental there are certain costs that you are going to come across. Most people are aware of these costs, but if you happen to overlook one of them you may end up putting yourself into a bad financial situation.

Follow the tips listed below that will help you to better understand the payment and prices that are involved with a home rental.

1. The first home rental cost that you are probably going on incur will be the security deposit. You will have to pay a security deposit so that the landlord has collateral against any damages that you may cause. In other words, if you break something and do not fix it before you move out, your secure deposit will be used. But on the same token, if you leave your home rental the same way you found it, your security deposit will be returned to you.

2. When your monthly rent comes due, you will have to pay your landlord on time. By not doing this you may end up getting threatened with eviction; and if you do it enough times you may find yourself without a home. Make sure that you know the payment methods that are available before you sign any lease. Most landlords will accept checks, cash, or money orders. Just make sure that you know your options.

3. You will also have to pay utility bills on some home rentals. This means that you will have to send a separate payment out for each bill that you owe. If you are lucky, you may be able to find a home rental that includes utilities. This way you can just pay one bill and get it over with.

4. Just because you are living in a home rental does not mean that you will never have to pay for repairs or upgrades. Of course if something breaks like a toilet or sink the landlord will repair it, but if you happen to break something yourself, you will have to pony up the cash. In addition, if you want to upgrade your home rental you will need to pay for this stuff yourself. Some home rentals are furnished when you buy them, and some are not. And if your home rental is not, you will be responsible for bringing your own items.

Overall, there are many costs that go along with a home rental. The good thing is that they are not too extreme. If you know what to expect, you should not have any problems paying for everything that your home rental requires.