People are moving to Utah for a variety of reasons. One is that it is the fastest-growing state in the country, and it boasts an agreeable cost of living too. Second, it has some of the best universities and several in-demand IT and healthcare jobs. Last but not the least, it consistently ranks high in ease of doing business surveys.
If you’re thinking of starting a business here, one of the most practical options is to rent out your house. How do you go about it, though?
1. Own a house.
This seems like a commonsensical notion, but there are hidden depths to the situation. Although Utah allows tenants to sublet, it doesn’t mean it’s the perfect setup. It can create complications on your lease agreement, especially if you fail to inform your landlord. Besides, subletting doesn't allow you to maximize your business.
The best way to offer a home rental is to own the property. If you don’t have an enormous capital, you can consider getting HUD multifamily financing from companies that offer it like Bonneville Multifamily Capital.
2. Write a lease agreement.
A tricky part of the rental process is the rental agreement. It is binding and enforceable, so anything that is in the document may help foster a relationship between you and the tenant. It also needs to follow the complex federal, state, and local laws.
Don’t create the agreement by yourself or depend on the templates available online. Rather, consult a lawyer. Encourage your tenant to read the contents or even seek the advice of a different attorney.
3. Know the basics.
Many provisions regulate tenancy in Utah. These include the following:
- Except for very few instances, you cannot discriminate tenants based on their level of income, race, religion, and civil status.
- The state doesn’t have any maximum security deposit, but it will work to your advantage if you make it competitive.
- It’s your job to make sure the unit is habitable before you turn it over. Moreover, if the unit is damaged before the move, it is your responsibility to list them down in the move-in checklist.
Talk to your lawyer to learn more about these rules and work with the business organizations to guide you on your venture.