If you’ve ever thought of becoming a landlord, there are a few basic things you’ll need to know to start your journey. The first one is how to turn your primary home into a rental property.
It’s easy once you understand the necessary steps involved. After all, converting primary residence to rental property requires some strict planning to ensure that you don’t run afoul of the housing laws.
At the same time, you want to maximize your rental profits within the law. To help you along with this, here is a step-by-step guide to help you get started.
Apply for Licenses and Permits
To turn a primary residence into a rental property, it is essential to apply for all the necessary licenses and permits. You would need to be familiar with local building codes and safety standards. Make sure your rental property meets or exceeds all the requirements of your state.
You may need to prove that the space is compliant by having an inspector visit the property. Once your rental space has met all the necessary legal criteria. You will be able to apply for an operating license from your local municipality or county.
Prepare the Property
Inspect the premises for any damages that may need to be fixed and address any safety concerns using a licensed contractor if necessary. Upgrade the property if needed to increase its desirability for potential renters. Clean and paint if desired.
If the property includes outdoor areas, outdoor furniture or landscaping features, as appropriate and desired. Create a list of amenities you expect to provide.
Add Landlord Liability Insurance
Landlord liability insurance helps protect your rental property, tenants, and you in the event of property damage or injury that occurs while someone is on your property. It covers medical payments, court costs, and damages to your property or tenants.
You should research the best landlord liability insurance options in your area and speak with a licensed insurance broker to get the right coverage. Make sure you understand these requirements before signing up for coverage so you can be prepared to meet them in the future.
Get Property Management Software
The right software can make it easy to manage your rentals, as well as streamline your processes. Property management software can provide valuable insights into tenant behavior. Enabling you to make more informed decisions when it comes to how you manage and advertise your rental property.
It can also help you track rental payments, keep a comprehensive database of all tenants, and even provide professional reports. You can even set up automatic rental payments to ensure you never miss a payment from your tenants.
Armed with the right software, you will be in a much better position to manage your rental property efficiently and profitably. There are a variety of software companies out there. Hire a property management company and we will help you to decide whether Appfolio vs Yardi is right for you.
Guide to Converting Primary Residence to Rental Property
Converting primary residence to rental property can be a great way to open up a new income stream. To make sure you transition as quickly and as smoothly as possible, make sure to research in-depth and seek the advice of professionals.
Then once your rental property is ready, you’ll be able to create a steady income stream and ensure long-term success as a landlord. So start your journey today and begin profiting off of your rental property!
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