If you’re going to rent out your residence, there are a lot of things you should think about. Here you’ll find 5 tips for succeeding as a new landlord.
- Ensure Safety
Make sure that you have safety for rent payment, either as a deposit that is put into a locked account (deposit account) in your bank or as a guarantee. This way, you’ll avoid loss if the tenant doesn’t pay and the tenancy must be called off.
You can’t demand higher safety than a sum equal to six months of rent. The safety should be placed into the same bank as to where the rental is to be paid before the tenant moves in.
- Fixed-Term Rental?
If you wish to have control of when the tenancy should cease, you need to rent out in a fixed term. It should also be clear in the lease that it can’t be terminated during the contract period.
The minimum time for a rental is three years, but one year if you’re renting out a basement or an attic in a one- or two-person home, and you live in the same house yourself.
- Rent for a Shorter Time?
If a member of your household is going to use the residence, or you have another good reason, for example, that you’re going to sell the residence, you can rent for a shorter time. You need to make the tenant aware of this in writing before the contract is signed. If the given reason isn’t met, the tenancy moves over into being terminable, with full termination protection for the tenant.
A lot of chaos has ensued because landlords and tenants haven’t been in a clear agreement about details like the rental horizon. Presis Utleie, one of the most widely used systems for both old and new landlords in Norway, has made it easy for landlords to make clear, digital leases that both they and the tenants can understand. Magnus Berg from Presis Utleie says that a digital lease is a major step in the right direction when it comes to solving the most common tenancy conflicts.
- Ejection Clause
Make sure you have a so-called ejection clause in the contract. This way, you can request governmental help to terminate the tenancy if the rent isn’t being paid. Without this clause, ejection will be a very lengthy process.
- Know the Rules
Both the landlord and the tenant should make an effort to understand the rental rules. Ensure that you have a proper lease. House owners should have a standard agreement that is adjusted to the tenant’s needs.
When both parties know their rights and duties, problems won’t arise as easily. It pays off to be flexible, and a good personal relationship between the parts is always an advantage. Remember that most tenancies are terminated without problems.
Here comes a final bonus tip: if you should ever need to sell your rental residence, and perhaps buy a new one, you should be aware of some of the real estate agents you should avoid. Being a new landlord can be a challenging endeavour, and there are a lot of things to think about, from your relationship with the tenant to making good purchase decisions with regards to the residences you choose to rent out. Having some guides to help you along the way will come in very handy!