So, you have purchased one or two investment properties and are ready to find a tenant and start making money with them. That's great, but hold on just a second. There are three critical decisions you need to make regarding your Detroit houses for rent before you start advertising in search of a tenant. If you don't take the time to think through the issues presented below, you may make a Detroit property management decision that you regret.
- Lease or Rental Agreement? A lot of beginning Detroit property managers don't realize there is a difference between a lease agreement and a rental agreement, but there is. The one you use will be determined by how long you want to rent your Detroit houses for rent for at a time. If you want tenants to sign a contract for a year or longer, you will use a lease agreement, but if you want to do a month-to-month contract, you'll use a rental agreement.
- Monthly Rental Rate and Deposits - The next thing you need to think about are how much you will charge tenants each month for your Detroit houses for rent. Additionally, you also need to decide if you will require a security deposit (this is a wise requirement) and how much it will be.
- Will You Allow Pets? One of the major issues tenants are concerned about when they search for Detroit homes for rent is whether or not pets are allowed. This is a decision that only the owner/landlord can make and it basically comes down to whether or not you are willing to deal with the tenants who are irresponsible pet owners (these tenants are generally few and far between). If you do allow pets, you will probably want to require a non-refundable pet deposit to ensure you have the funds available to repair any damages caused by the pet.