Treat your rental property like a business

1. So you think you want to be a landlord, do you? Your second home is in the perfect vacation spot and the extra income will add a nice boost to your bottom line.
2. But before you skip off to place a classified ad, be warned:  Renting out your property can become complicated, particularly for those in the wrong mindset, experts warn.
3. Still interested? Here are some tips for renting out property like a pro:

Know the law: One of the first things to address is whether you’re permitted to rent out your property in the first place — no easy feat, says Christine Karpinski, author and rental property expert. “It all depends on your home, your area and your local government. You might have to do some digging,” she says.
A good place to start is look at your homeowners’ association’s CC&Rs (covenants, conditions and restrictions), documents that dictate how the homeowners’ association operates and what rules the owners must obey.

Get insured: Owners should notify their insurance provider that the property is being used as a rental and buy a rental rider that will pay for lost rent in the event of a loss that makes the house inhabitable, such a fire or flood, says Tony Drost, 2011 president of the National Association of Residential Property Management. Check if your hazard insurance pays for damage to tenants’ personal possessions; it most likely doesn’t, in which case you may want to require that tenants get renter’s insurance as well.

Be professional: There are two simple things you can do to make your transaction with potential customers seamless: Respond quickly to rental inquiries — (”We live in an internet world and people expect a response instantaneously,” Bissmeyer says) — and accept credit cards.
“The whole world takes a credit card,” he says. “Not taking one is a mistake.”