There are a multitude of benefits to owning rental property. Many different situations may lead homeowners to convert their own home into a rental property. This can feel like a complicated process, so we have broken down 10 simple steps for converting your home into a rental property.  

1. Look at your Current Mortgage 

Some mortgages require you to live on the property for 12 months before you are allowed to rent it out. It is incredibly important to follow all requirements given to you by your mortgage provider. 

2. Ensure you would Qualify for an Additional Mortgage

If you are converting your home to a rental property, you will likely need another place to live. Confirm that you would be able to obtain another mortgage before you rent your home out to another person. 

3. Change Insurance Policy

Homeowners need to have a homeowner insurance policy. Landlords, however, need to have a landlord policy. If you haven’t changed your insurance policy and an issue arises on the property you are renting, it is very likely that your claim will be denied because it is a rental property, not your personal home. 

4. Learn the Impact on your Taxes

There are both good and bad impacts of renting property when it comes to your taxes. Your income is taxable, but you will also have more options for tax deductions. Consult with a tax professional about all the different ways in which converting your home to a rental property will impact your taxes. 

5. Research Rules in your Area

It is important to know the rules and regulations present in your area. This will help you to ensure that you meet all regulations, which can prevent significant legal issues from occurring later on. 

6. Make Necessary Repairs

No one wants to live in a building that has broken components. Ensure that you make all necessary repairs before renting out the building. Not only will this keep your tenants happy, but it will prevent the problem from escalating. 

7. Clean the Building Thoroughly

A clean building ultimately looks far nicer than one that is dirty. Providing your tenant with a clean building is crucial in making a good impression. In addition, this will set the bar for the condition in which you expect your property to be returned at the end of the tenancy. 

8. Determine your Rent Price

You will need to do a significant amount of research before you set the price of your rent. It is important that your rent price remains consistent with other rental properties in the area. If you charge too much for rent, you will have a difficult time filling the property. 

9. Decide if you Wish to Hire a Property Manager

A property manager can take on a great deal of the responsibility that normally falls to the landlord. This can be especially useful if you wish to rent out your property in addition to your regular career. Here at Keyrenter, we are dedicated to simplifying your processes and maximizing your profits. 

10. Set Your Rules

There are many considerations that will only be decided by you. You will need to decide if you will allow pets on the property, as well as what your policies regarding smoking and other factors are. We are here to help make your rental property business as successful as possible. To learn more about our services and how to convert your home to a rental property, contact us at the Keyrenter in Tacoma today!