10 Tips For Converting A Home Into A Rental Property
Posted On November 5, 2020
Homeowners seeking to enter the rental market might think they have it tough. If you’ve never owned a rental property before, this conversion from homeownership to a new home for renting may seem like a daunting challenge. However, it’s actually a lot simpler than you might expect. With this handy checklist, you can get started right away, and get your home on the market in no time.
1. Lockdown favorable mortgage terms.
A profitable rental property starts with a great mortgage. Low-interest rates and favorable repayment terms can create a structure that allows you to leverage your tenants’ rent into full payment, and then some. This allows you to keep all of your cash in your pocket each month and still pay down the loan.
2. Start with the roof.
A great home needs a sturdy roof. Hiring professional Washington roofers with years of experience in the business to replace old, failing roofs can get your property ready for the market in no time, and that additional paycheck in your bank without too much hassle. Get that roof repair done first, or have a new roof installed as a top priority, and all else should fall into place.
3. Replace outdated heating and air conditioning.
Reliable climate control is an important inclusion for any renter, no matter the location. If you are buying a property with aging equipment, then an upgrade is in order. AC units often last for years, so a new one to replace the old unit will do a great job of helping you in finding and keeping good tenants.
4. Decide on furnishings.
Rental units are typically either furnished or unfurnished. The market and type of home you will be renting may dictate which option is better for you and your bottom line. Setting up a meeting with your Venterra Realty specialists can help you decide which is the better option when it comes to furnishing, and subsequently advertising to your local market.
5. Find storage space to supplement your business.
Every property comes with its own nuances, and space may end up transforming for a new renter a year down the line. Making sure that you have storage options in a convenient location for your renters will not only provide them with peace of mind but is excellent service too. This can only assist you in your career growth if, when advertising for new tenants, the previous occupants have left great reviews of their rental experience. Get to know your local storage company, and their staff, so that you help each other out. As an example, if you’re in the Dallas area and a renter asks you about storage spaces, to which you can give them the details of the best storage units near Dallas without them having to research, your tenants can have their removal needs met quickly and professionally, which is the best way to keep both you and your renters happy.
6. Repaint every three or four years.
Painting is an essential job for any rental space, and keeping the walls of high quality means that you may need to redo the painting every three or four years. You may be able to stretch this in some rooms, but new tenants have a keen eye for these details, and a lack of care here could turn off many prospective tenants, as they read into the state of the place in unintended ways.
7. Put down luxury flooring that will last.
Hardwood floors are both a major draw for prospective tenants and are far more durable than carpets. Changing to this luxury upgrade means that you can charge more in rent and avoid any costly replacements for years, or even decades. A little money up front goes a long way.
8. Keep up with landscaping.
Keeping the lawn fresh is another great way to invite prospective tenants into the home. A well-kept garden is a great way to show that you care for the entire home and will take the needs of your renters into consideration. It’s an imaging device that is incredibly powerful.
9. Upgrade kitchen appliances.
Just like with flooring upgrades, high-quality appliances in the kitchen last longer and will prove to be far more cost-effective in the long run. Lashing out a few extra bucks before your first renter moves in will create a better long term cash flow situation for your bottom line. They don’t have to be large pieces of furniture, just a few extra bits of kitchenware will show you are willing to go the extra mile for providing excellent service.
10. Stay up to date with your tenants.
Finally, keeping up to date with your tenants is a great way to keep them in the home. Long term tenants are more likely to share a mutual respect for your property, and they pay rent on time and indefinitely. One major concern as a landlord is the lapse in rent payments that come while a property stands vacant, so keeping tenants is essential.