Do you plan to move and sell your old house? That’s normal for most people but some decided not to sell their old home but convert it into a rental property instead. Why do they do that? The first reason is due to decreased home value. They rent out their primary residence to help pay the mortgage and eventually sell it once the value increased again. Another reason is that they have an extra home, probably a gift or an inheritance, that they just want to keep. One more reason is to boost their income. This is a great opportunity since primary residence is likely to have a low-interest rate even if you turn it into an investment property.
Are you one of those who want to turn their home into a rental property? Consider these things before deciding to put up the FOR RENT sign in your front yard.
Get An Insurance
Aside from having homeowners insurance that may help cover damage caused by certain risks, such as a fire or break-in, you may also need to get landlord insurance. The liability coverage on your landlord policy may help pay for the resulting medical expenses or legal fees in case your tenant got hurt. Bear in mind that the landlord insurance and homeowner’s insurance does not cover your tenants’ personal belongings. It may be wise to include renters insurance a condition of your lease to provide them with some liability protection.
Secure Permits
Permits are required for a residential property to be used as a rental property. An inspector from the local government will be expected to come and perform an inspection on your home’s electrical and heating systems, emergency exits, or other health concerns. Making sure your house is safe from hazards.
How Much Will You Charge?
When it comes to the rental rate, make sure you calculate all of your cost including the repairs you will have during the agreement and the monthly profit that you expect to receive. After that, check the rates of house rental in your area for you to know if you have a competitive and reasonable rate for your future tenant.
Make The House Presentable And Appealing
You can make your rental house attractive if you do repairs and upgrades. You can do this by thoroughly cleaning the house and having it freshly painted. Also, making sure that all appliances are working and in good condition will make it a good choice for those looking for a house rental. There is no need to be super fancy, remember that your rental rates must not be overpriced.
Looking For Tenant
It is suggested to understand and be updated with the Fair Housing Laws. Apart from that, you should always screen your prospective tenant thoroughly. Perform a criminal background check and examine the tenant’s credit. Getting references from a tenant’s former landlord can also help in knowing your tenant better. By doing this, you can prevent frequent eviction.
Hire Property Management Company
Hiring a property management group will save you from tons of headaches due to the daily responsibilities of being a landlord. The property management company will serve as the landlord for you and will handle all the paperwork, and all the repairs. They can also be trusted when it comes to collecting rent and will also be the one to communicate with the tenants for you. When it comes to legal procedures such as a tenant who does not pay or tenants who will be evicted, the property management group can also assist you. You can contact Davenport Property Management for more information regarding this matter.
Determining whether you will convert your home into a rental property is a big decision to make. It can really be a great source of income for your family if you get all the information you need by doing research or talking to established landlords. Keep in mind that success always comes with hard work and perseverance.