Are you thinking of renting out the place you once called home? Maybe you’ve been able to invest in a new property and you’re moving in, but you’d like to keep this one on as a money maker? Or maybe you want to open up a part of your home to a tenant and start making passive income off of them?
Whatever your plans right now, you’re about to rent out a property you live in for the first time, and that takes some careful planning.
That’s what this guide is here for. If you want to use the square footage beneath you as a way to bring in extra cash, you need to know the fundamentals down below. Check them out before you get started, and at the very least, make sure you know you’re on the right side of the law!
Check You’re Operating Legally
It’s not always possible to turn a residential property into a rental one. Even if you’re renting out to other residents, there may be a law in place within your state or county that prevents you from letting out your home.
Indeed, there are also nuances within these laws that restrict the type of rental you can set up. For example, some properties may not be eligible for long term lets, as they’re located in a ‘short term rental’ zone, and vice versa.
Each state will have their own rules and regulations regarding the length of tenancy according to the zoning laws they operate with, so be sure to check this. You can also hire professional help here and get them to do the hard, legal-based work for you, such as a lawyer that specializes in real estate.
If you’re worried about the cost of hiring such help, remember that the cost of any fines or fees for breaking the law will be a lot higher!
Do You Need to Move Out?
Now comes this thought: if you’re going to be renting out your property, will you need to move out entirely? For some people, this will be a simple answer, whether it’s a yes or no. But if you’re not too sure, and you’d like to try and stay in the property if possible, here are a few things to think over.
Firstly, could you bring in a live-in tenant that has access to their own space that’s separate from yours? Say you have a third storey to your home that’s doing little other than gathering dust.
If there’s a bedroom and bathroom up there, and you could even convert another room into a kitchenette, this could be a great cash generator! And seeing as you don’t need to leave, you don’t have to pay for two properties at the same time.
You should also think about how you use your home. If you only need it for certain times throughout the year, you could rent it out to others when you’re not actually home. This would also mean you don’t technically need to leave and move out.
You’ll Need to Find Somewhere to Keep Your Possessions
Whether you’re moving out or not, you’re going to have to clear space of some kind. Finding a place to keep your possessions, however, can be quite tricky. You can’t just bundle them all into your new place, or into the rooms your tenant won’t be using. That’ll just cause a lot of confusion, mess, and could even be a real trip hazard.
Instead of this, look into storage solutions outside of your properties. At worst they’ll ensure you have time to sort out a more long term arrangement! But for most new landlords, they’re a saving grace when it comes to space issues.
Indeed, outside storage can be very useful at a time like this, especially when it comes to apartment properties. They’re usually squeezed for space compared to traditional housing anyway, so look into reliable apartment building storage to solve the problem.
This is an affordable way to get your stuff out and make space without having to throw anything away, especially if you’re bringing in a long term tenant. Their rent can cover the cost, you can still make a profit, and you won’t need to worry about turning a sought-after two bedroom apartment into a boring one bedroom affair.
You’ll Need to Have a Clean Up
Once you’re packed up and space has been made, it’s time to do a proper clean up. And we mean a real good deep clean here too! You need to make sure you’ve disinfected as many of the fixtures as possible, including all kitchen surfaces and bathroom features, to ensure your tenant has a germ-free home.
Even when you know you’re a clean person and the home is in good condition, you need to put time into this kind of clean up! After all, you’re the only one who knows your hygiene level, and no one else can even be sure.
Screening Tenants is Essential
If you don’t screen your tenants before you say yes to them, you could end up with a lease held by someone who doesn’t respect your property, doesn’t pay on time, and who may even disappear entirely and leave you with debt to pay off.
Employ the services of a screening company to handle this part of the selection process, and always ask for references before you go any further!
Will You Have the Time?
Finally, this is the last thing to ask yourself. Being a landlord takes time, especially if you’re sharing a home with your tenant. Do you have space in your schedule to dedicate to the job? Do some careful thinking on this before plunging in.
If you’re about to rent out a property you once called home, make sure you’re preparing for the ordeal with the tips above. They’ll ensure you’re operating correctly and getting a good deal for the space, without having to sacrifice your own time, possessions, and financial wellbeing.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)