How To Turn Your Home Into Rental Property?
Renting your house may help you start your investment career with no additional costs, since you already own the home. This could be a first step in a tried-and-tested method for building wealth. Many real estate investors begin this way by renting out their homes as they upgrade to bigger or better properties throughout their life.
During this time, property values will build wealth for your future. You may also begin to experience additional monthly cashflow if you rent your house out for more than what your monthly expenses are, which is always the goal for all potential landlords.
More and more homeowners are opting to become landlords instead of selling their home outright. If your local real estate market is on the upswing and you have decided to rent out your property, there are a couple of things to consider before getting your tenants.
Here are 6 easiest and fastest way to get into the rental income game:-
- Find a Tenant:- You can find tenants by advertising in newspapers. Also spread the word through friends, relatives and coworkers. Ask potential tenants to fill out an application form, listing their basic information like name, employer, salary, previous landlords and references. You'll also need their Social Security number and signed authorization to check credit reports and criminal history.
- Insurance:- Protecting your property with the correct insurance policy is extremely important. As a landlord, you will need rental home insurance. It covers your home's structure, legal costs, expenses and loss of rental income, if repairs are needed.
- Safety:- Safety and good maintenance of the property should be your top priority as preventable accidents and poor safety conditions leave you open to prosecution and financial disaster.
- Home Inspection:- When your home is empty, thoroughly inspect it and repair major problems. Address potential problem areas including roof leaks, clogged gutters, cracks, leaky faucets or pipes and electrical outlets. Also, inspect your floors to make sure they are sound.
- Determine how much rent to charge:- Get an idea of rent amounts by checking newspapers, online sites or neighbourhood rental areas. Be realistic about rent levels. This gives you an idea of how competitive your rate will be to others.
- Get Professional Help:- The agent will help you decide on various properties. Agent will handle all paperwork, take care of the repairs, collect rent and communicate with the tenants.
If you decide that turning your house into a rental is right for you, take some time to think through the challenges. Turning your current home into an investment property can have some appealing advantages, but it takes proper planning to make it a reality. Make sure you do your due diligence before moving forward.
Author : Gunjan Johar | Real Estate Analyst & Home Decor Blogger