Transform Your Home into a Rental Property
As a property manager, I have managed properties for a variety of owners, many of whom once lived in a house, townhouse, or condominium that became an investment property for them.
There are many reasons you might be unsure about what to do with your home when you can no longer live in it.
I live in an area that includes both a college and a large teaching hospital. This has helped to create a market with many people who purchased a home thinking they would live in it for several years only to find out shortly after making the purchase that they are packing their bags and relocating.
I have a client who found out he was relocating just 6 weeks after closing on his home. Life often gets in the way of some of our best plans, so although becoming a rental property owner was not my client’s goal, turning his home into a rental property will allow him to relocate knowing his new property will not hold him back.
Don’t panic, life happens!
Okay, you found your dream job… on the other side of the country. You got married or maybe separated, or you’re going back to school.
Life happens!
It’s true, that turning a private residence into a rental property isn’t the answer for everyone, but maybe it is the answer for you. Start by considering these questions:
Will you lose money if you sell your property now? Will you make more money in the long run if you hold your property as a rental? Assess the local market to determine your estimated selling price vs. your estimated leasing price. How much work would you have to have done if you plan to sell vs. plan to lease? Does it make more sense financially to hold onto your property than it does to sell it?
Is this your dream home? Is there a chance you’ll someday be able to come back to this home?
Is this a chance to add real estate to your investment portfolio?
Is the home in a market where you know where you know you’ll be able to keep it occupied by renters?
Have you determined that you’re ready to move forward and turn your home into a rental property?
Now what?
You’ll have some decisions to make and work to get done on the front end.
Here are the first 4 steps you need to take to get started.
First, and most importantly, if you decide to turn your home into a rental property you must change your mindset about your home. Whether you hire an outside property manager or manage the rental yourself, you have to immediately start thinking of your home as an investment or a business and NOT as your home.
All of your decisions from this point forward should be made with the thought in mind that you want to charge the most you can for rent, you want to maximize the rent you’re charging.
Second, you’ll have to decide if you’re going to handle the leasing and management on your own or if you’re going to hire a professional manager.
(That discussion is a whole separate blog post https://www.mcpropertyadvisory.com/blog/real-estate-investment-diy-property-manager)
Third, prepare your physical property. From minor repairs to major renovations, get your home ready for renters by ensuring it meets safety codes, is aesthetically appealing, and is equipped with the proper amenities. Use the checklist provided below to help guide you through that process.
Fourth, If you didn’t hire a professional property manager it’s time to set up a leasing and management plan.
Get your free checklist to turn your home into a profitable rental property!