4 Tips for Turning Your Property Into a Long-Term Rental
Perhaps you’ve decided that it’s time to relocate to a new area, but you’re just not quite ready to sell your house. If putting your home on the market doesn’t feel like the right decision, you could turn it into a long-term rental property instead of looking for a buyer. As a landlord, you can hold onto your current house and use the rental income from your tenants to cover the mortgage and maintenance costs. Here’s how to transform your property from your primary residence into an attractive rental for future tenants.
Value-Boosting Renovations
Before you begin advertising your property for rent, you’ll want to take on a few projects that will boost the value of your home, which will allow you to ask for a higher monthly rental price. Consider these projects as investments that will help you earn more income in the long run! For example, you may want to replace carpets with hardwood floors for a modern touch, upgrade your kitchen appliances, add a security system, and even spruce up the landscaping in your front and backyards. Because of the COVID-19 pandemic, you might be wary about hiring contractors for the foreseeable future, so prioritize projects that you can complete on your own.
Finance Your Remodeling Efforts
If you have a few pricey remodeling projects in mind, you might be trying to figure out the most effective way to cover the costs. Cash-out refinancing could be a simple way to pay for these renovations. Rates are at a comfortable level right now, but you should examine info on them before making that decision.
How does cash-out refinancing work? You’ll
work with your mortgage lender to replace your existing loan with a new
mortgage loan for a higher amount. As the borrower, you will then receive the
difference between these two loans in cash. Once this process is complete,
you’ll be able to invest that money in materials and supplies for your projects!
Cash-out refinancing is a very convenient way to obtain the funds you need for
repairs and renovations.
Setting a Fair Rental Price
Now that you’re satisfied with your home’s appearance, it’s time to crunch some numbers to come up with a fair rental price. SFGate recommends checking out listings for comparable properties to see how your competition is priced, as well as reaching out to other local landlords you know to ask for their input. Depending on how many calls and emails you receive about your property after you list it, you may need to raise or lower your price to make your rental more enticing.
Connect With Tenants Online
Since showing tenants your property in person
could be quite risky at the moment, focus on taking well-lit photos of your home for online listings and
offering virtual tours. The National Landlord Association suggests uploading video footage showcasing different rooms to
online platforms, as well as conducting live video tours for prospective
tenants who request this service.
Before these live tours, you should take a few moments to tidy up your home and open the blinds so that your tenants will be able to see every detail of the property. Be aware that during this pandemic, it may take a little longer than usual to find reliable tenants, so you should be financially prepared to go for a month or two without rental income.
Whether you think you might want to move back into your property at an undetermined future date, or you want to keep it in the family so that your children or grandchildren can use it one day, renting it out, for the time being, will allow you to retain ownership even if you’re living far away. If you invest in strategic renovations, set a reasonable rental price for the local market, and focus on online marketing tactics, you’ll find great tenants to occupy your property!
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