Renting a home can provide far greater returns than selling a home. Aside from the tax benefits, you can also accumulate long-term wealth by investing in a rental property.
However, when renting your former home, one thing could get in the way of your success – your emotions!
Our homes are filled with memories. They serve as the backdrop of the families we’ve built, parties we’ve thrown, and the friendsgivings we’ve hosted. It is where we retreat to when we’re worn out, when it storms, and when we’re sick. All these add to an emotional connection to our homes.
But, if you decide to become a rental property owner and be successful at it, you’ll need to detach from all these emotions. What used to be your home is now an investment. And there is a big difference between the two.
Here is how to turn your former home into an investment property that brings in income.
An attractive property is always easier to rent. You’ll not only have an easier time finding tenants, but you may also have a low tenant turnover.
The following are tips to help you get started.
Basically, sell what your property has. Don’t focus on what it may be lacking. Is the property in close proximity to public transportation? Sell that. Have a balcony or backyard patio for summer? Sell that.
The first way to attack either of these rooms is to clean them! Not remodel or renovation. Scrub cabinets inside and out, polish all appliances, mop the floors, and clean the toilets, tub, and all the hardware.
A fresh coat of paint can do wonders in revitalizing practically any interior living space. It can brighten dim hallways, revive tired walls and highlight architectural features like high ceilings and built-in bookcases.
First impressions are lasting impressions. If the property’s exterior isn’t up to par, tenants may not even want to look inside. As such, remove any chipped paint, torn window screens, or broken banisters. Make sure the lawn and shrubbery are well-manicured.
You probably have personal touches around the home. You may have framed family photos hanging on the walls or painted the dining room bright red. But now that you’re renting the place, you need to depersonalize it .
Here are some steps on how to depersonalize your home:
Once you depersonalize the home and the house is show-ready, advertise it. Your goal should be to get it in front as many prospective tenants as possible.
Rental property listings work great in this regard. Good examples include Zillow.com, Realtor.com, Craigslist.com, and Apartment.com.
To list your home in any of these platforms, you’ll require photos. So, try to take high-quality photos that display your property in the best way possible prior to posting them.
Aside from rental listing sites , you can also use social media sites like Facebook and Instagram. You can create highly targeted advertisements, or simply ask your friends to share your rental property on their personal profiles.
When prospective tenants call to view your rental, prepare a set of rental questions to ask them. This will not only save time but will also help weed out bad tenants right away.
These are some questions you should ask prospective tenants:
Look for legitimate answers like “I’m moving closer to my new job” or “I’m moving because I need more space.” If the renter says, “I’m moving because my landlord terminated my lease” or “My landlord and I just don’t get along”, then you should definitely reference the landlord to find out why.
If they agree, go ahead and schedule a showing. If not, continue and pass on the prospective tenant and keep looking.
If you don’t allow pets and the prospective tenant has one, do both yourselves a favor and stop the interview. However, if you allow pets, then explain your pet policies. For example, the number of pets, size of pets and pet fee/deposit.
If they can, continue with the interview. But if they can’t, aren’t sure or say, “Not right now”, then politely move along the next applicant.
These are questions you shouldn’t ask prospective tenants:
There is a big difference between being arrested and being convicted of a crime.
Essentially, leave your tenants live in peace . Don’t barge in whenever you wish. Once you have accepted rent and deposits from a renter, you no longer have the enter the house as you please.
According to landlord-tenant laws, tenants have a right to “ quiet enjoyment ” of the premises. You may only enter the premise once you’ve notified your tenant in writing. And, the reason for the entry must be reasonable. For instance, to:
In addition, the entry times must be reasonable. For example, from 8:00 a.m. to 5:00 p.m. during weekdays and from 9:00 a.m. to 3:00 p.m. during weekends.
In the end, being a landlord has its ups and downs. Get it right and it can be a source of income and great fulfillment. On the flipside, if you are struggling with managing your rental property, you can look into getting help from a local property management company.
