Renting your home not only helps pay the mortgage, but it’s also the start of what could be a rental property investment career should you choose to buy more properties. To prepare your home for tenants, there are a few tips for turning your house into a rental. Let’s take a look at them.
Do You Need To Refinance?
Check with your mortgage loan officer to make sure you are handling the situation correctly. Some banks require a refinance for a different rate when your property becomes a rental.
Not only do you need homeowner’s insurance, but you’ll now need landlord insurance.
Tenants and home damages are unpredictable. Make sure you and your family are protected with the right insurance.
Register as an LLC
When you turn your house into a rental, you are running a company of sorts. Get your LLC (limited liability company) for added protection against any angry tenants who decide to sue because they’re unhappy for some reason.
Unfortunately, as a landlord, it’s always better to be safe than sorry. A rejected application could unpredictably take a turn for the worst.
Don’t go looking for tenants until you’re solid in your decision of reasonable rent. Understand the area and what rent generally costs for a home like yours.
Rules make everything clear for both parties. Have the list ready for all applicants, so there are no questions are left unanswered.
Are pets allowed? Where can tenants park, and when is rent due? These are a few questions to ask yourself when creating your rental rules.
Application and Lease
Create the application and lease with an attorney. One missing sentence could mean the difference between rent getting paid and no rent required.
Prepare the Home
The paperwork is done, you and the home are insured, and now it’s time to make the home tenant- friendly. For example, you could paint the walls a neutral, pleasing color. Here are a few other things to do when preparing the home:
- Make sure all electrical components work.
- Make sure there are no leaking faucets.
- Make sure everything is clean.
- Make sure the HVAC runs efficiently.
- Make sure the doors and windows are secure.
Hire a Property Manager
It may seem like there is a cost savings to go about managing your property on your own. It’s true, you won’t have to pay yourself, but you may be surprised how much of your time will be needed as the landlord and manager—and time is money.
Every instance that causes a tenant to need you—from broken appliances to midnight calls because the heat isn’t working—falls on your shoulders.
A property manager takes care of everything. Leases, applications, rent collection, and scheduling of maintenance is all handled. It’s well worth looking into so you can go on with the rest of your life and not feel married to your rental property.
In conclusion, know the laws and take time to prepare everything properly. Then consider property management to make the transition from resident to landlord a smooth one.
Excalibur Homes, recently awarded “Best in Georgia”, offers full-service Atlanta rental home management for all of your rental property needs. We take pride in offering only the highest quality services. Contact us, and together we can keep your rental properties at the top of everyone’s list.