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Things to Consider When Renting

By Edited Apr 28, 2014 0 0

Renting can be a win-win situation for both the person renting and for the renter. The person who rents can make extra money, and the renter can possibly save money instead of purchasing whatever it is that they are using. And many different things can be rented: an apartment, a boat, a storage space, a parking spot, furniture, a room…the sky is the limit.

No matter what is being rented, there are some considerations to make. To begin with, there needs to be some sort of contract in place that both the renter and the person renting can agree on. The person renting his/her property needs to protect the property as well as himself against any liabilities. For example, if a person rents out a room in their home for storage, then they might consider adding into their contract that they are not carrying insurance for the belongings and are not liable for damage. Google free legal contract templates to make sure you protect yourself.

Most rentals do not cover damage to personal property, so the next consideration to make for both of you is whether or not to purchase an insurance policy. Typically this can be done through your auto insurance agent. You should take photos of your personal property (with a camera that has the correct date setting) the day that your insurance policy goes into effect or earlier. These could come in handy for any claims that need to be made in the future.

A third consideration is whether or not to charge a deposit to the renter. A deposit could make the renter pay more attention to the state of your personal property while living/storing/parking/etc. While holding onto their money, you can invest it in a high yield savings account or other low-risk vehicle and earn a little interest on it. As a renter, you may wish to put a stipulation into the contract that your money will be invested in a low-risk investment and you are to be paid the interest of any of your deposit that is unused when you no longer rent the space.

Finally, you need to consider how much notice will need to be given before the renter is released from a contract. This is an important consideration; if you are the type of person who moves at opportunities or you are young and not settled yet, you may wish to negotiate into the contract an exit clause of some sort where you will not need to pay large sums of money to get out of a contract. As a person who is renting, you will want to have enough heads up to find another renter, especially if you are depending on the income from your property.

There are serious considerations to make for both the renter and the person renting, and it is likely that the both of your wants and needs could be opposite of one another. A renter wants flexibility, a low price, and assurance that their property will not deteriorate while at the other person's property. The person renting wants a stable renter at all times, to increase the cost on a consistent basis, and to not have their property deteriorate. The challenge is to compromise so that it is a win-win situation.



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