Making Your Home Into a Rental Property
This post was generously created by Alyssa Strickland of Millennial-Parents.com. Thanks Alyssa! Image courtesy of Pexels.
If you’re considering making your home a rental property, this can be done, but there are some business and household aspects of the change that must be attended to first. The property will need to be in good repair, adequately insured, thoroughly cleaned, and freshly painted. Read on for tips on how to get ready.
Take care of business
Before you can put your rental on the market, you’ll need landlord insurance to protect yourself and your property. Check your city or town regulations on what permits are needed. Become familiar with Fair Housing laws and how they will apply to you as a landlord. Before you decide on a price, add the costs of your monthly mortgage payment, taxes (which may be different for a rental property), a margin to cover the expense of repairs over time, the cost of maintenance, and the cost of a property management company, if you choose to use one. Once you have this sum, determine how much you can add to it to turn the profit you hope for. Consider running credit checks on prospective tenants.
Consider the structure of your business
You may think of yourself as an individual renting a single property, but as a landlord, you are also a business. Your business can be a sole proprietorship, a dual partnership, or a Limited liability corporation, and there are other options too. A limited liability corporation (LLC) is often a good choice as it protects your assets and provides some flexibility. There may also be tax advantages. To form an LLC, you can do the work yourself, hire an attorney, or use a formation service. Many states have different regulations about forming LLCs, so make sure that you or your representative have checked these regulations and are within the law.
Focus on curb appeal
Your rental property should look good from the street. The landscaping, trees, shrubs, and any gardens should be well-kept and neat. The front door should be inviting. A fresh coat of paint on the front door is a good idea. Make sure that all windows and doors facing the front are in top form. Replace any loose shingles or siding on the house. If the structure has peeling paint, it will need to be sanded and repainted. Sometimes a pressure wash of the building and walkways can really spruce things up, too.
The house numbers on the front of the building can add or detract from the look. You might consider replacing them with new ones, which come in a variety of fonts, finishes, and metals. You can choose from bronze, stainless steel, copper, aluminum, and brass. This type of house number can be attached to surfaces ranging from stucco to brick to stone and even metal siding, and this could be the ticket to giving your home’s facade a fresh, clean look.
Marketing your property
Once your home is ready to rent, you’ll need to make prospective tenants aware of it. Of course, you can put a “For Rent” sign out front and advertise on social media. You might also think about getting a business card. The card is useful for giving to people who take tours of the property, so they can easily contact you later. You can create your own business cards using an online tool where you customize a basic template with your style in font, color, design, and even an image. This gives a professional impression and will be a plus for those who are considering renting from you.
Renting your former home can be a lucrative endeavor if you do the groundwork properly and maintain the structure in tip-top shape. Once you become a landlord, you’re a business owner, and you might want to make your company an LLC. Make sure your business concerns are adequately addressed before you actually rent the place. Spending a bit of time and effort on curb appeal will ensure that with a reasonable price, you’ll always have people eager to rent your property.