HOW TO: RENT OUT YOUR HOME

The Associated Press

Published Sunday, January 25, 2009

When Dave and Gina Schudi of Phoenix went house hunting last year, they knew the time was right to buy - not sell - a home.

So when they did purchase a new one, they rented out their old home.

"It all depends on the market," said Dave Schudi, who plans to sell the old house eventually. "We’ve got good renters in there."

Falling house prices and a slow market are forcing more homeowners to consider renting their properties.

It’s something Realtor Julia Vakulenko suggests to potential clients. "Basically, we ask all the people who contact us, ‘Must you sell it right now?’ " she said. "Most likely, it will just sit there or maybe sell below the market value."

If done right, renting out a home can help the owner ride out the housing slump, said Vakulenko, but the process requires some research.

Here are some suggestions for homeowners who are considering renting their home:

● Familiarize yourself with local laws dealing with rental properties. It’s important to understand the eviction process, how to handle security deposits and what type of access you have to the property once it’s rented.

● Determine whether you want to handle property issues or hire a company to do it. If you take on the responsibility, you are obliged to fix any problems or find professionals to do it.

● Develop an application that will help you quickly determine whether you want a person for a tenant.

● Ask for references. Call former landlords and ask about the person’s rental history.