Wednesday, May 3, 2023 / by Bunch Team Realty Group
Learn How to Make Money Renting out Your Home
Guest author: Tina Martin of Ideaspired
If you're a homeowner faced with a decision about selling your property, there's another option to consider: turning your home into a long-term rental. Renting out your property can generate a steady stream of income while still allowing you to maintain ownership of your home. However, becoming a landlord can be a bit of a learning curve, and it requires preparation and some important considerations. In this article, the Bunch Team Realty Group gives you tips for turning your home into a long-term rental.
Consider the Benefits of Turning Your Home Into a Long-Term Rental Instead of Selling It
Before you decide to sell your home, consider the benefits of renting it out: you'll have a steady source of income, you'll maintain ownership of the property, and you can still potentially make a profit when you decide to sell it later on. Renting out your home allows you to be in control of how it's maintained and who lives there.
Repairs to Make Before Listing as a Rental
Before listing your home for rent, you'll want to make repairs to ensure it's in good condition for tenants. This includes fixing any major issues like plumbing, electrical, and roofing. You'll also want to make any cosmetic repairs, like painting or re-tiling floors. These repairs will not only make your property more attractive to potential tenants, but they can also help you avoid future costly repairs.
Take Advantage of Technology that Connects You Directly to Vital Home Services
In today's digital age, taking advantage of technology has never been easier, and a new service from Frontdoor is doing just that by connecting homeowners directly to local, vetted home professionals. This advancement in technology enables you to find reputable home professionals in your area without having to spend countless hours scouring the internet. Whether you're in dire need of a reliable plumber, electrician, or handyman, this service offers an effortless way to get things done around the house. Home maintenance has never been easier.
Make a Good First Impression Through Curb Appeal
When renting out your home, curb appeal is crucial. First impressions matter, and the appearance of your home from the street can make or break a potential tenant's decision. Make sure your lawn is well-manicured and the exterior of your home is in good condition, including the siding, gutters, and roof. You can also add simple upgrades like a fresh coat of paint or updated lighting fixtures to give your property an updated, modern look.
Make Your Business Official
If you're renting out your property, it's important to make your business official. One way to do this is by forming an LLC. An LLC is a legal entity that separates your personal assets from your rental property, providing liability protection. Plus, forming an LLC can also help you manage your taxes, as it allows you to deduct expenses related to your rental property.
Find Trustworthy Tenants to Call Your Rental Home
Finding trustworthy tenants is one of the most critical components of renting out your property. Before renting out your property, make sure you conduct a thorough background check and require a security deposit. You can also consider working with a property management company, which typically has access to more reliable, long-term tenants.
Hire a Property Manager
Hiring a property manager can make your life as a landlord much easier. A property manager can handle everything from finding tenants to collecting rent to maintenance and repairs. While they charge a fee, it may be worth it if you don't have the time or expertise to manage your rental property on your own.
Turning your home into a long-term rental can be a great decision for homeowners. By following these tips, you can prepare your home for rent, find trustworthy tenants, and potentially generate a stream of income for years to come. Remember to make repairs, add curb appeal, form an LLC, and consider hiring a property manager to help you navigate the process.
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