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Are you planning to switch to your new home and want to make your old home into money-making property?
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How to Turn Your Home into a Rental Property? Are you planning to switch to your new home and want to make your old home into money-making property? If Yes, then you’re at the right place! There’s good news for all land owners who want to make money from their properties without selling them. You can easily turn your own home into a rental income property. Renting a home is one of the most efficient ways to make money through your property by renting out the space monthly. It gives you a consistent income, and you’ll stay as the owner of the property, and your rental income increases from time to time. There are numerous reasons to turn your home into a rental property. If you want to make rental income from your property, then keep reading this guide. In this guide, we’ve covered the step-by-step process of turning your home into a rental income property. Let’s get started! Here’s the step-by-step process to turn your home into a rental property: Step 1 – Decide if you can handle being a Landlord Many landowners think it’s easy to become a landlord and ask for rental money every month, but it’s not as easy as it seems. There are numerous work & responsibilities of a landlord, including regular calls, maintaining property conditions, and sometimes overdue collecting rent can be complex. There’s no doubt that Rental Income can be a great source of income for a landlord, but this income comes
with landlord has to deal with regularly like unexpected damage, maintenance, security deposit and many other factors. problems that a However, you can do it on your own, or you can hire a property manager who can handle all these problems without letting you disturb anything. You need to pay some amount to the manager, and you can enjoy rental income without any problem. So it’s completely dependent on your choice to become a landlord. You can do good research and find out the responsibilities of a landlord and then make a fair decision. Step 2 – Wait for a year before turning in the rental property If you have a mortgage on your home and are planning to turn it into a rental property before 12 months, then it can be considered mortgage fraud, but it depends from place to place. So you should read the contract carefully before taking a mortgage for the property and try to stay at least for a year and then plan to turn it into a rental property. There are many documents you need to look at for a mortgage because if you turn your property into a rental property before 12 months, then intentionally purchasing a home for rental income can be considered fraud. So it’s important to read your documents carefully and then act accordingly.
Step 3 – Check if you can get Another Mortgage If you’re planning to shift to your new home and want to buy another property to live in, then you need to apply for a mortgage and check if you’re getting the appropriate mortgage to buy another property. For this, you should consider any professional legal consultant to know about the mortgage and help you get a mortgage to buy another property. Step 4 – Change your Insurance Policy If you have homeowner insurance and are turning your home into a rental property, then your homeowner’s insurance will no longer be enough to cover your property. You need landlord’s insurance to make your rental property protected. Landlord’s insurance is more expensive than a homeowner’s insurance, but it comes with numerous benefits like: •Structural damages to your property •Maintenance equipment •Outdoor features like sheds, pools •Minor accidents and injuries on your property •Legal fees •Loss of rent or damaged property •Damaged caused by fire, lightning, and hail These are some essential things covered in landlord’s insurance. Step 5 – Learn about Tax Changes To become a landlord, you need to know some basic tax rates on your rental property. However, when you’re turning your home into a rental property, then you need to qualified tax deductions for rental property expenses, including: •Property taxes •Mortgage interest •Repairs and renovations •HOA fees •Landlord insurance policy • Utilities You can consult a legal firm to learn about legal formalities and tax rates on your rental property to understand the tax changes. Step 6 – Make sure to Inspect your Property Before turning your home into a rental property, you need to hire an inspection officer to check your entire property thoroughly and find all the issues that must be fixed before
turning it into a rental property. It’s important to inspect your property via experts and find all the problems like plumbing, termites, flooring or structure that require improvement. Once you have a complete list of valid property problems, you need to invest money and fix all these issues to keep your home safe and prepare for rental property expenses. Step 7 – Prepare your Property After fixing all the issues in your property, it’s time to prepare your home into a rental property and make it more attractive and appealing for rental. You can make major changes like new wall painting, outdoor garden finishing, and upgrade your interior in the kitchen, bathroom or anywhere required. Once you have a well-furnished rental property with working appliances, then it increases the chances of getting a good rental income. Step 8 – Set the Rental Rate Now, you need to set the rate of your rental property, but it’s not easy to set a rate for a landlord. You need to consult a professional real estate agent like Amar Realtor to set the best rate for your rental property. Setting up rent for your rental property requires researching nearby locations like rental property in California or anywhere you want and finding online rent for similar properties to get an idea. Then, you can set a reasonable rate based on your property condition, location, amenities, and facilities. Step 9 – Set the Rules To maintain your rental property, setting some rules for paying guests is important. You can add all these rules in the agreement lease and let your paying guests check the document carefully, and if they agree with your rules, you can proceed further. You can set the rules as per your convenience like: ● How many people can occupy your home? ● Allow pets or not ● Decide the date for rental payment ● Maintenance costs like yard, garbage and pest control ● Duration to stay can be fixed And many other rules you can set per your requirements and find the best fit for paying guests. Step 10 – Decide if you want a property manager
Hiring a property manager for your rental property can give you great relief from all the stress and problems with a landlord, like collecting rent, maintenance, finding tenants and documentation. So it’s good to have a consistent rental income with peace of mind, which can happen when you hire a property manager. You can research and find the best real estate property manager for your rental property and get ready to turning my home into a rental property. Conclusion Converting home into rental property can give you amazing benefits and the best option to make money without selling your property. But it comes with many complex processes and documentation that are not easy to handle. At this point, you can take help from Professionals like Amar Realtor to help you manage your rental property, take complete responsibility for the landlord’s tasks, and keep you free from the rental property process. Contact Amar Realtor for your rental property management needs For more information about buying a home in the Bay Area, contact us today. We have a team of professionals ready to help you have the best home buying process possible. For more information about Bay Area real estate and deciding when to buy a home, contact me today! Amar Realtor offers expert real estate services with proven results in the Cupertino real estate market as well as outlying areas including homes for sale in Milpitas, San Jose, Campbell, and properties in San Mateo County, homes in Contra Costa and Alameda County.
