For the home-owner faced with renting out a home for the first time, there are a number of things to consider. People may find themselves becoming a landlord for a variety of reasons, planned or otherwise. Maybe you have bought or built a new house, but would like to keep the old one. Perhaps you’ve inherited a property you’d like to rent, or possibly you’d like to rent your old home while it’s on the market after you’ve moved into a new place. No matter what the circumstances, renting your home can be a valuable source of income, or a costly nightmare.

It’s important to make an honest appraisal of the projected income against the cost of possible repair and maintenance, not to mention the potential of deadbeat tenants who may not pay the rent or who may cause costly damage to your property. If the property is almost paid off, in reasonably good condition and is in a safe neighborhood, then renting may be a very good idea. If not, you might consider selling up before setting off down the somewhat risky path to being a landlord.

Screening potential tenants is one of the trickiest aspects, but also one of the most important considerations associated with first-time rentals. Don’t trust your gut feelings – looks and charm are terrible indicators when it comes to finding a reliable tenant. Make absolutely sure your potential tenant has a solid history of paying their bills. An application form is still one of the best ways to weed out unreliable prospects and there are free standard tenant application forms available online. Be sure to check multiple references among the applicant’s former landlords and employers and take a little time to authenticate the addresses, names and records provided.