Top 6 Tips for Turning Your Home Into a Rental Property
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Loading... - Sianga Modou
- 06 Sep 2022
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There are many reasons for using your property as a rental. Maybe your home has been on the market for a long period, and you’ve determined that you can’t sell it at a value that allows you to break even. Maybe you inherited or were gifted a property that you don’t want to sell. Or you may be among the many property owners who want to supplement their income by becoming a landlord.
Regardless of the reason, you’ll need to get your house in order first—both financially and physically. Keep reading to find out what steps you should take before you start looking for tenants.
KEY TAKEAWAYS
Take out a landlord insurance policy to protect your property against damage and you against liability.
For a residential property to serve as a rental property, a permit is required for safety purposes in some areas.
Make sure it is clean and freshly painted, and replace anything that looks severely dated.
Understand Fair Housing laws before you list the property, and run a credit check on prospective renters.
Consider hiring a property management company to serve as the landlord for you.
Take Out Insurance
A homeowners insurance policy isn’t enough if your home serves as a rental property. Anytime you have people on a property that you own, you take on some degree of responsibility for their safety. What if a tree falls on the home, injuring your tenants? What if there is a gas leak that causes an explosion? What if something relatively minor turns into a major legal headache?
Now imagine if you purchased the property for the sole purpose of renting it out, and that tree caused so much damage that extensive repairs have to be made, making the house unsuitable for renting. If you didn’t have insurance, you would have to pay for repairs to the property out of pocket—something not a lot of people may be able to afford.
This is why it’s important to arm yourself with an insurance policy designed for landlords. Landlord insurance combines property and liability insurance. With property insurance, the dwelling, other parts of the property such as a fence, and any personal property are covered against loss or damage. The liability portion protects you against losses incurred because of medical bills or legal costs if you’re found liable for injuries sustained by other people on your property.
Get the Required Permits
Many municipalities require a permit for residential properties to operate as rentals. Permitting requirements tend to vary by municipality, so it’s a good idea to check in with city hall to see if you actually need one. Read More...
