Today we are talking about how to turn your home into a rental investment property.
The first step is getting a rental analysis done by a professional in the field who has experience in the business. You need someone who knows what market rents are, what vacancy rates are and how to establish tenant qualifications. They can let you know how much you can get for your property and about how long it will take you to get a qualified tenant.
Next, you’ll want to take that information and talk to a tax professional. It’s important to make sure this is the right decision for you. Renting out a property has some excellent tax benefits, but it’s not right for everyone. So be sure you talk to a tax professional.
Preparing and Repairing the Property
Go around your home and make some minor repairs. Take care of dripping faucets and other minor things that need to be taken care of. It’s easier to take care of these things before you have a tenant who has moved in.
When you get that rental analysis done, the professional who completed it should also advise you about what improvements, if any, should be done to the property to get it ready for the rental market. Work on that while you’re living in the home or after you move out. Have the property in great condition before someone moves in. Tenants don’t expect a property to be in model home condition when they’re seeing it, because in most cases there is packing and moving that’s in the process, and clutter will occur at that stage. But when the tenant is ready to move in, the home has to be in the best possible condition. When you do that, the tenant will take better care of the property and you’ll have a better result as a landlord.
Budget and Save
Put away some money every month for future repairs, vacancy time and turnover work. Things will come up, and we have seen owners put themselves in a bad position when a furnace goes out and they are not prepared financially. Or, a tenant will move out and they have a hard time meeting their financial obligations with the vacancy. When you put some money away, you’ll have a budget and you’ll be prepared.
These are a couple of different things you can do to turn your home into an investment. If you’d like more information or you’re interested in a free rental analysis, please contact us at American Heritage Properties.