Deciding to become a landlord and rent out your home is a huge decision not to be taken lightly. The life of a landlord isn’t always the easiest, but it can pay off in the long run! There is a lot that goes into turning your primary residence into a rental property. You have to update your home insurance, taxes, and mortgage, etc. Take a look at just a few of the aspects that go into renting your property. Don’t forget to do more research as well!
The perks of owning a rental property are that you get to take certain deductions out of your taxes. You can deduct anything from utilities, HOA fees, insurance, property taxes, etc. it would be a good idea to talk to a tax professional to get more information regarding your taxes and deductions.
Any needed repairs or upgrades
You want your home to be updated and appealing to future renters. Replace some lights, put a fresh coat of paint on, do what you need to do to make your home light, airy and inviting!
Update your insurance
It is a good idea to look into landlord insurance as well as decide if you want your tenants to be required to carry renters insurance. No matter what policy you get, you want to make sure you have the best coverage in case something happens.
Decide on the monthly rent
You must figure out what your home is worth, and what you need to charge to cover all expenses and earn a profit. You can also compare rentals around your area and base the rent off of the neighborhood average.
Decide on the rules and stick to them
Last, but not least; write down the rules you want your tenants to abide by. Make sure that you can stick with them so that your future renters don’t take advantage of you. This is also the time when you can decide how involved you wish to be. If you will take care of the lawn care, or make your tenants take care of it or if you will decide to pay a property manager to deal with all requests and repairs. Take the time to think about the rules because it will be hard to change them down the road.
Renting your home can be a great way to earn a profit or keep your home occupied while you are away for an extended period. Before you jump in with both feet, do your research to know what you’re getting in to!