Converting your home to a rental property may be a better option than selling in a buyer’s market. If you take the time to educate and prepare yourself to be a landlord, you can gain the benefits generated by rental property income. Do a comprehensive cost-benefit analysis of how renting your house can help you pay down your mortgage. Be sure to keep these helpful tips in mind when considering becoming a landlord:
- Get out your calculator. Add up how much it costs to keep and maintain the property including mortgage payment, maintenance costs, and property taxes. This should give you a base renting price for your home. Consult your real estate agent if you are having trouble coming up with a price that is realistic in your area, beneficial to you, and fair to your renters. You want to make sure your rental property income is enough to pay for the majority, if not your entire, monthly mortgage payment.
- Read the fine print. If you educate yourself on fair housing laws for your state and what a landlord is legally responsible for when you are renting your house, you will be less likely to encounter problems later on. Search your area for any course offerings about earning real estate income, go to the library for books on the subject, or read blogs online about people renting their home(s). Understanding your rights as well as the rights of your tenants will help you prepare for your role as a landlord and understand expectations from the get-go.
- Check your sources. Background checks are relatively inexpensive and can be fast and easy way to screen potential renters. A background check, credit report and personal references can help you determine the character of your potential tenant and can give you an insight into their trustworthiness. Also, check with a housing attorney to help you draft a housing application and rental agreement that is both fair, legal, and can stand up if it’s disputed in court.
- Upgrade. Last, but not least, get the most out of your real estate investment by making upgrades to your home before you start renting your home. Not only will this increase the value of your home when you’re in a position to sell, but it can also increase your rental property income. Look for attractive home loan rates and find the financing solutions you need to make your rental property a success.
Have your investments pay off a mortgage
Whether you eventually want to sell your property and this is a temporary fix, or you plan to stay a landlord for the additional rental property income, it’s best to do your research before you put your house on the renter’s market. Look around at local apartment magazines and online postings in the area to make sure your rental is competitive. Once you are able to rent your house, sit back, relax, and enjoy the investments you’ve made.
Sponsored content was created and provided by RBS Citizens Financial Group