There are a variety of reasons why you might decide to convert your home into a rental property. You might be moving to a smaller space and want to make passive income on the side. You might realize that the property you plan on selling has been sitting in the market for quite a while or you want to wait a few years before selling your property, as prices are presently down.
Other situations might call for transforming your old home since you bought a new one, inherited one and have no use for a former home. It’s an exciting endeavor to start a rental property business. The thought of a consistent monthly income is an upside to this decision, but first, we must follow a series of steps to make your foray in property rental a success.
1. Make your property rental ready.
Before advertising your home as a rental property, you need to thoroughly inspect the unit. Is the roof in a good condition? What about the heater and air conditioning unit?
Check the normal wear and tear of furnishings and appliances. Is there a need to add or replace the old ones?
It’s also good advice to check the rental homes around the neighborhood. What type of landscaping do they have? You might need to focus on curb appeal to attract renters.
Remove clutter and check if you need to have a repainting service done to freshen up the look of your home. Hiring a professional cleaning company ensures that your unit remains pristine. Before marketing, taking pictures and conducting showings, make sure your property rental is ready for viewing.
2. Study how to be a good landlord.
There’s no better teacher than experience. However, you can cut time-consuming mistakes by learning more from seasoned landlords. You can consult with your friends who have been in the rental property business for a long time.
You can also read several informative blog articles from different property management websites. You can apply their useful tips to avoid making costly mistakes.
Even if it might feel awkward at first as a novice landlord, you’ll get used to the position. Certain characteristics comprise a successful landlord. These can be developed and improved in time.
Some of these effective traits are professionalism, fairness and reliability, as well as an expansive knowledge of Landlord-Tenant laws. He also honors the tenants’ privacy and openly communicates to settle issues.
Furthermore, he tends to be organized and systematic in keeping pertinent document copies, like leases, on hand. Taxes and insurance premiums are paid on time and a consistent schedule is mapped out for property inspections. It’s best to take pointers from different resources to ensure that your rental property will be running smoothly.
3. Perform property repairs and upgrades.
Before you attempt to market your rental unit, you must check for repairs and upgrades. You might even need to conduct a renovation project beforehand.
Start with kitchen and bathroom remodeling, as these two areas are the prime focus of most renters. This helps elevate the value of your property and justifies a higher rent price. It also makes your home more attractive, drawing plenty of prospective tenants.
Although, you must be careful that your upgrades will equate to a higher income. Avoid making changes that won’t spell much difference, as this will only lead to unnecessary expenses. It's best to scrutinize what matters.
Replace outdated gadgets for energy-efficient ones. Invest in professional cleaning and a fresh painting job.
Make sure your property is on a similar level with the rental properties in your area, so it’s easier to obtain renters. Don’t forget to keep within your budget since spending too much defeats the purpose and can diminish your financial resources.
4. Get the necessary property insurance.
As a landlord, you’re responsible for the safety of your tenants, therefore you need to acquire the right kind of insurance. It’s advisable to have landlord insurance for both property and liability protection.
You must shield yourself from massive financial losses resulting from property damage in case there are gas leaks or natural disasters, such as a fire. If a particular tenant causes severe damage to your property, you can also use your insurance to cover it.
In situations in which your property needs to be free from pest infestation or mold presence, this type of insurance will be beneficial to the landlord. There will be rental compensation as you address the issue by hiring a termite removal company or mold removal and remediation company.
In the case of a tenant experiencing an injury from an accident in your property, you can also file for a claim to cover the medical expenses. This helps you avoid a lawsuit from a tenant.
5. Get the required property permits.
Depending on the location of your rental unit, there are specific requirements to obtain a permit so that your unit is allowed to open as a rental property. The objective is to check safety measures that the local government authorities can review to determine whether your house passes the safety test.
This is to prevent hazards and make sure that the rental property complies with the building safety code to protect future renters. Electrical, heating and health are the main concerns here. There are no exceptions to this, either. All rental properties will need permits for safety inspections.
Converting your home into a rental property needs adequate planning. You have to check if you have enough financing to spend on needed upgrades. You also need to check if you can deal with the stress of managing a rental property.
A great alternative is to hire a professional property manager who can oversee the entire rental property operation. Contact Income Realty Corporation at (305) 251 5561. We can provide you with ample peace of mind with our dedicated support and superior customer service.a termite removal service company