There are many reasons why a homeowner may want to turn their home into a long-term rental, such as creating a reliable source of income. However, that doesn’t mean you should take the leap immediately. Instead, it’s wise to explore what it takes to pull it off, allowing you to ensure it’s the right move. If you’re thinking of making your property a long-term rental, Doc Real Estate shares what you need to know.
Preparing the Property
Before you list the home as a rental, you want to make sure it’s ready for tenants. Ideally, you want to begin by emptying the house and scrutinizing it. That way, you can identify potential issues that may need repairing in advance.
In some cases, you may also want to consider some upgrades. By adding features that tenants prefer – like functional home offices and open concept living areas – you may have an easier time getting top dollar.
Once any work is done, have the entire home professionally cleaned. That way, it looks its best during showings. Then, once you find a tenant, clean it again, guaranteeing that it’s spotless when the tenant moves into the home.
Also, when you advertise the property, don’t forget to mix digital promotions via social media with some old-fashioned approaches. For instance, you can use these free brochure design templates to generate brochures you can hand out to potential renters.
Getting Professional Support
While you could decide that operating as a landlord and handling all of the property management yourself is doable, many property owners don’t have time to do it all. As a result, you may want to find professional support to make it easier.
For example, you may want to hire a handyman for repairs and upkeep. A handyman can handle various tasks, including touching up paint, cleaning gutters, installing new flooring, and other activities that don’t require a traditional contractor. When searching for handyman services, review their ratings and check client testimonials. Also, make sure that they’re insured and bonded before you hire.
You could also consider working with a property manager. They can handle nearly all of the tasks associated with overseeing the property, selecting tenants, managing issues, collecting payments, and more. While they do cost a bit, the full-service support could make it worthwhile.
Exploring the Alternatives
Before you list your home as a long-term rental, you want to take a close look at the alternatives, namely selling the property or listing it as a short-term rental instead. That way, you can choose the path that’s right for you.
Begin by looking at local real estate prices and how long listings are usually active before securing offers. That way, you can see if selling is ultimately a better move financially, as it could be in some situations. Work with a reputable real estate professional like Doc Real Estate to ensure that you get the best possible deal.
Suppose your property and operating vision for the unit make those guidelines applicable. In that case, you’d need to register with the Department of Business Affairs and Consumer Protection using the Shared Housing Registration Portal. Additionally, you’ll have to pay an annual fee once your property is approved and follow other regulations regarding the advertising and management of the property.
In some cases, the ordinance makes property owners assume that going the short-term rental route is too much of a hassle. However, once you’re approved, some properties turn large profits, so you may want to consider this option fully to see if the income makes the hurdles worthwhile.
Doc Real Estate was opened by Dr. Joe “The DOC” Bottorff, a retired minister who has a Ph.D. in theology. He began his career in real estate over 25 years ago, winning the title of Realtor of the Year for the State of Indiana before deciding to open his own agency, DOC Real Estate, in 1992. Call 317-888-7333.
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