For Rent by Owner: How to Turn Your Home Into a Rental Property

For Rent by Owner: How to Turn Your Home Into a Rental Property

Out of the 100 largest cities in the US, 91 saw an increase in rent prices in 2018. Now is the perfect time to turn your home into a rental property. 

In order to list your home as for rent by owner, you’ll need to take a few steps. Let’s take a look at exactly what you need to do to prepare your home for rent.

Legalities and Insurance

Some mortgages don’t cover investment properties. Others may require you to live in the home for a certain amount of time before you transition it into a rental. You may need to refinance your mortgage in order to have a loan that allows rental properties.

If you have a homeowners association, they may also have restrictions on rental properties. Be sure to check if you need prior approval.

Homeowner’s insurance policies may not cover your home after putting up homes for rent.

You will need to find a policy that offers damage and loss coverage on the property as well as liability coverage. Rental property insurance can be a great option.

You should discuss your liability and insurance policy with a lawyer. They can also help create a lease agreement and application that will meet legal requirements.

Determine Management and Finances

If you’re thinking about becoming a landlord, you’ll need to think about how you’ll deal with daily operations. This could include collecting rent, taking care of maintenance requests, and cleaning. A rental property management company can save you time and hassle.

Determining how much you need to charge for rent is also important. You should make sure what you charge will cover your mortgage and expenses while still making a profit. You can start by looking up other rental prices in your local area.

Prepare the Home

Investigate other local properties so you can compete with them. Figure out what condition they’re in, as well as amenities and features you should consider offering.

Then, have a professional home inspector look over the entire property to find and fix any issues. You may need to repair, remodel or repaint when getting it to a good condition. A real estate agent or contractor can help advise you about preparing home for rent.

Move any personal property out of the house and stage it for photos and tours. If you are using it for a short-term rental, like Airbnb, you will need to leave furniture and essentials for renters to use.

Find a Tenant

The final step in how to rent home is to find a tenant. You’ll need to market your home effectively. Create a listing with a great description and hire a photographer to take photos.

You’ll need to have a tenant screening process in place. You can check with past landlords, run credit checks, and check employment.

Finally, sign a lease and require a security deposit from your new tenant. You may also want to conduct a property inspection so you are both on the same page about the condition of the property.

For Rent by Owner

Having a rental property is a great way to bring in extra income. If you want to list your home for rent by owner, you’ll need to take a few steps to turn it into a rental property. A rental property management company can make the process even easier. 

Call Blue Ribbon Property Management today to see how they can help turn your home into a valuable rental property.