For various reasons, you may want to sell off your Bentonville property investment. However, you don’t want to do this when the market conditions are unfavorable. A better option is to rent out your unit to benefit from a passive income and long-term appreciation in value.

While preparing to convert your residential home into a rental space may not appear take a lot of effort, you need to be ready to shoulder the responsibilities of being a landlord. Here are things you need to do after deciding to be a landlord:

Determine a Target Demographic

When converting your home into a rental property you need to start by evaluating the local amenities near your property. Ask yourself if the property is near local attractions, schools or business districts or if there are entertainment centers nearby as these will help you draw in tenants.

From there, look at the property itself and what it offers. Knowing the best features of your Bentonville property narrows down your target market and aids in identifying tenant needs so you are better equipped to renovate the rental accordingly. You will also learn if your rental property is best marketed as a vacation home or a long-term rental.

Research Your Landlord Duties

As a landlord in Arkansas, your duty to keep your Bentonville rental space habitable is not specifically implied. This means that you will not be required to perform repairs that are not covered in the lease agreement.

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Compared to other states, Arkansas does not have strict rules regarding a landlord’s duty to keep the rental livable and safe. That said, landlords are expected to comply with the following:

  • Air conditioning/heating: In Arkansas, landlords are not expected to provide air conditioning/heating. However, they must maintain these units if they are offered inside a rental.
  • Plumbing: Landlords are expected to keep plumbing up to code.
  • Hot water: The property must supply and maintain hot water.
  • Clogged drains and toilets: Except in cases where damage was deliberate or was caused by negligence, landlords must provide repairs for these situations.
  • Electrical issues: Like plumbing, landlords are expected to comply with electric service maintenance.
  • Garbage receptacles and service: Landlords are not required to provide trash bins, whereas renters must properly discard their garbage.
  • Safety devices: Landlords must provide and keep smoke alarms and carbon monoxide detectors in functional condition.

Get Your Rental Unit Ready for Residents

With the strong competition in the local real estate market, you must offer more value to prospective renters. You need to be more attentive to their needs and keep your Bentonville rental in an excellent state.

Consider a walk-through inspection of the property to ensure that everything is in working order prior to tenant moving. You should also perform all necessary repairs and document the state of the property. This will make the move in process go more smoothly and can even reduce the risk of conflict at the end of the tenancy.

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Create an Effective Marketing Strategy

To effectively market your rental, you can start by noting the best features in your Arkansas rental. What amenities do you offer? Most renters prefer having a spacious bathroom, updated kitchen, energy-efficient appliances, and outstanding curb appeal. Once you complete this list, you can now highlight these items in your ad.

Use a strong headline, write a good copy, state the rent, and include quality photos of the space. Make sure the ads are visible to the market you plan to target. Consider posting on newspapers, property listing sites, or handing out flyers and putting up professional signs. You can also choose to work with agents to fill out the rental quickly.

Another effective strategy is to engage the services of a property management company to oversee the rental operation of your Bentonville property. This can be a good investment to ensure your unit is handled by professionals who have solid experience in the industry.

Hire a Property Manager to Aid You in Legal Compliance

When converting your home into a rental unit, you need to consult with real estate lawyers and accountants to ensure that you are adhering to local laws and property codes.

Property managers can often have in-house attorneys to guide landlords in property law compliance. Additionally, they can aid in drafting leases that are reviewed to ensure that the contract is legal.

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What’s more, they know how to assign the right rental price, perform comprehensive tenant screening, and market your unit to reduce the vacancy gap. This technique can be very beneficial for busy landlords.

Apply Proper Tenant Screening

Screening renters for your Bentonville rental space should be meticulously conducted to ensure a suitable match. You want to attract renters who pay on time and are reliable in taking care of your unit. Study a candidate’s tenant history and credit score, including criminal or bankruptcy records, so you can pick the right tenant to welcome in your property.

Once you’ve chosen your tenant, it’s still best to charge a security deposit. In Arkansas, you can request that a renter pay a security deposit amounting to two months of rent to cover repairs beyond normal wear and tear. However, landlords must refund the security deposit within 60 days from the lease expiry.

Bottom Line

Renting out your Bentonville home requires being updated with Arkansas property laws. If you have less time to dedicate to managing your unit, you can opt for reliable support from trusted property managers to limit your risks and ensure your property is in a stellar condition.

Contact Pro X Property Management — Bentonville today to learn what customized property solutions we offer to rental homeowners in Bentonville, Arkansas!