A Homeowner's Guide for Converting Their Property Into a Profitable Long-term Rental
For homeowners looking to create a supplemental source of income, converting their home into a rental property is a great idea. But, being a landlord is no small feat as it involves renovating your property, investing in marketing, conducting due diligence with renters, and protecting your property from unforeseen circumstances. In this article by Perry Wellington Realty, we'll explore all the steps homeowners need to take for converting their homes into profitable rental properties.
1. Plan for Required Renovations
Conducting minor renovations is one of the best ways to boost your rent price and attract renters. Additionally, renovations are bound to increase property value, which proves beneficial in the long run for those planning to sell the home in the near future. Here's a list of home renovations you can conduct at an affordable price:
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Security: Install a home security system, including outdoor cameras, to monitor the property's perimeter and front door. Additionally, smart locks provide a higher level of security than traditional ones, providing tenants peace of mind regarding their safety, according to Safewise.
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Re-painting: The better the exterior of your home looks, the more tenants you'll attract. Hence, consider adding a fresh coat of paint, cleaning rain gutters, and giving your windows and patio/deck a good scrubbing. In case any of your windows are cracked or damaged, replace them promptly.
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Landscaping: A well-mowed lawn is bound to increase your home's curb appeal, as reported by Family Handyman. Before listing the property and accepting showings, hire a professional landscaper to beautify your outdoor areas. Additionally, consider adding metal lettering to make your entrance stand out from others in the neighborhood. Metal letters for signs come in a host of finishes, such as aluminum, copper, brass, stainless steel, and bronze.
2. Invest Time and Money Towards Marketing
Given that your plan is to earn consistent income from renting the property, you'll need to find reliable renters with good credit scores and renting history. Along with publishing your property listing on social media platforms and rental websites, consider hiring a real estate agent who in addition to finding tenants, will undertake the responsibility of arranging showings, managing paperwork, and conducting credit plus background checks.
Here are a few tried and tested strategies to get the best response from your online listings:
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Take Good Photos: Take high-definition images of your property along with good lighting. These can easily be taken through your mobile phone.
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Declutter: Rid the space of clutter such as decorations, old furniture, carpets, rugs, etc. This will make your home look spacious and allow tenants to apply their decorative ideas to the space.
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Highlight Property Features: Create a clear description of the property to accompany the images. This should include the home's square footage, amenities included in rent, proximity to public transport and local attractions, details regarding services provided by the HOA (if applicable), and any additional details you deem fit.
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Create a Business Card: While business cards may seem unconventional when marketing properties to tenants, it makes it super easy for individuals to contact you about the listing. Tenants, on average, visit numerous properties before making a decision, and a personal touch through a business card can play a role in making them choose you over competitors. You can create a great business card by using this free tool.
3. Establish an LLC
Before giving your property on rent, remember to establish a Limited Liability Company through which contracts can be signed. With an LLC, you won't have to worry about personal finances or assets coming under the risk of litigation in the unfortunate event of contract disputes, injuries to tenants, or other unforeseen circumstances.
While establishing a Limited Liability Company is relatively straightforward, rules and regulations regarding the application differ between states. Hence, rather than trying to manage the hassle of filing paperwork single-handedly, delegate the responsibility to a formation service.
Turning your home into a profitable rental property won't be stressful when you follow the above-mentioned steps. Whether it be for finding clients or establishing an LLC, take the help of professionals, as it'll result in the property being rented faster. Additionally, when it comes to marketing, along with digital promotions, create business cards for a personal touch.
