Key Takeaways
- Renting Can be Smarter Than Selling: Generate steady rental income and build equity while waiting for the market to rebound.
- Understand Ohio Landlord Laws: Stay compliant with legal duties, rent increase rules, and security deposit regulations.
- Prepare and Market Effectively: Make the rental property move-in ready and use strong marketing to attract quality tenants.
- Property Managers Can Help: Save time and ensure compliance by letting a professional property management team handle day-to-day operations.
Thinking about selling your Cleveland, Ohio home to cash in on your investment? Before you list your house for sale, consider a smarter alternative—turn it into a rental. This way, you can retain your property and start the process of renting out your house and generating passive income.
By turning your home into a rental home, you can generate consistent monthly rental income. It’s a strategic way to hold onto your asset, build wealth, and keep your long-term financial goals on track.
If you decide to rent out your home, it isn’t just about placing a “For Rent” sign in the yard. Property management involves thoughtful planning, understanding state laws, preparing the home, and possibly enlisting expert property management help.
Whether you’re aiming for long-term tenants or short-term vacation renters, this guide from Doorvest Cleveland, will walk you through the key tasks first-time landlords need to do to rent out their Cleveland home, so you can make additional income.
Evaluate Your Property’s Strengths
Before the process of renting out your house and listing it on the rental market, analyze its features to decide on selling points. Is it located near universities, hospitals, or major business districts? Proximity to local attractions, public transport, and commercial hubs are benefits that can make your property more appealing to renters.
If your home is in a desirable neighborhood, consider furnishing it to cater to short-term tenants. Short-term rentals give you the flexibility to rent while keeping the door open for a future sale.
Know Your Legal Responsibilities
Being a landlord means more than collecting rent payments. Ohio rental laws and local landlord-tenant laws impose several responsibilities to ensure the property is safe and habitable.
Under Ohio’s landlord-tenant laws, landlords are required to:
- Provide hot and cold running water.
- Maintain heating systems in good working condition.
- Keep common areas clean and safe.
- Comply with local building and health codes.
- Install and maintain smoke and carbon monoxide detectors.
Landlords must also respect tenant privacy, providing 24 hours’ notice before entering the house, except in emergencies.
Understanding Rent Increase Regulations in Ohio
Ohio doesn’t enforce rent control, so landlords are free to increase rent at their discretion so they can generate income. However, it must be done lawfully:
- During the Lease: Rent can only be increased if the lease includes specific terms that allow adjustments (e.g., based on inflation).
- After the Lease Agreement Ends: If the tenant is renewing their lease, you can raise the rent with adequate notice.
- Notice Requirements: For month-to-month tenancies, landlords must provide at least 30 days’ written notice before the increase takes effect. For weekly tenants, a 7-day notice is required.
By complying with these guidelines, you protect your interests and maintain transparency with tenants. As a property owner, it is good practice to familiarize yourself and stay updated on current housing laws, like the Fair Housing Act and local landlord-tenant laws.
Get the Property Ready for Occupancy
In today’s competitive rental market, appearance and functionality matter. Potential tenants often look for rental properties that are clean, updated, and move-in ready. Professional deep cleaning can go a long way in improving appeal and maintaining your property’s condition when renting out your house.
If needed, invest in small upgrades for the house, such as repainting walls, updating fixtures, and ensuring all appliances are functional. These enhancements can increase the rental property’s value, reduce vacancy periods, and help attract potential tenants.
When it comes to property maintenance, make sure to keep track of all maintenance costs for the house. Be aware that when a tenant leaves, there may be normal wear and tear on the property. This is why it is important to have a security deposit to help cover any damages. More on that later.
Renting out your house can come with many surprise expenses, so budget carefully and stay on top of property maintenance to ensure tenant satisfaction.
Market Your Rental Effectively
To attract quality tenants, your listing needs to stand out on the real estate market. Start the process by creating a compelling property description. Address the top features potential tenants look for in your rental listings, such as:
- Off-street parking or garage access
- In-unit washer and dryer
- Modern kitchen appliances
- Storage solutions
- Outdoor living space like a deck or patio
Accompany your listing with professional-quality photos showcasing your rental property’s best angles and amenities. Do your research on the local market and houses similar to your own to set a competitive rent price.
Strong marketing can generate interest, but knowing how to find great tenants can help you turn that interest into a successful tenancy.
While online platforms, such as rental listings and social media sites are effective, don’t overlook traditional methods like flyers, local bulletin boards, and referrals from friends and neighbors. Word-of-mouth can still be a powerful marketing tool.
Hire a Property Manager for Peace of Mind
If renting out your house sounds time-consuming, you’re not alone. There are many responsibilities, which is why many homeowners opt to work with a property management company to handle the most important aspects. A property management company provides the following benefits:
- Creating and distributing rental ads
- Manage screening prospective tenants
- Handling lease agreements and preparing lease agreements
- Manage repairs and maintenance
- Manage collecting rent payments
- Preparing financial reports
- Ensuring compliance with local laws
A reliable property manager brings local market expertise and ensures compliance with Ohio laws. Though they typically charge 8% to 12% of the monthly rent, the benefits of the time and stress you save often outweigh the cost. Property managers know how to manage the day-to-day responsibilities of property ownership, and their knowledge can help protect you from costly expenses.
Conduct Comprehensive Tenant Screening
Tenant screening is critical to protecting your investment. Poor tenants can lead to rental property damage, late payments, or costly legal expenses. Conducting a tenant screening is good business and the first step to safeguarding your investment when renting out your house.
Before the tenant signs, here’s what to address for potential renters:
- Employment, financial situation, and income sources
- Credit score
- Criminal history
- Rental history and eviction history
- References from previous landlords
Once you find a qualified tenant, establish clear lease terms for the house. Include policies on pets, subletting, late fees, maintenance responsibilities, and when they must pay rent. Making sure you’re on the same page as the new tenants can help build trust, keep the property in good condition, and make the landlord-tenant relationship smooth.
Security Deposits in Ohio
Unlike some states, Ohio doesn’t limit the amount rental property owners can charge for a security deposit. However, if the tenant’s security deposit exceeds one month’s rent or $50 (whichever is greater), and the tenant stays at least six months, rental property owners must pay 5% annual interest on the excess amount.
Upon lease termination, landlords have 30 days to return the security deposit. Deductions are allowed for unpaid rent, property damage, and other breaches of the lease agreement. An itemized statement detailing any deductions must accompany the return of funds.
Failing to comply can result in the landlord being liable for double the amount wrongfully withheld, plus legal fees.
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Bottom Line
Turning your Cleveland property into a rental can be a smart and profitable move, especially during economic uncertainty.
By understanding your legal obligations as a landlord, preparing your home thoughtfully, and leveraging professional help, you can generate extra income while maintaining the flexibility to sell when the market improves.
If you’re ready to take the next step, reach out to a trusted property management company in Cleveland, like Doorvest Cleveland. We’ll help you navigate the complexities of property management, field maintenance requests, create lease agreements, ensure legal compliance with state and local laws, and position your rental for long-term success.
For more on our dedicated services and support, contact us today!