For the past week, we have been discussing about turning a drab property into a glam one and reselling it as a rehab home. For sure, you have learned a lot by now and I am pretty sure you cannot wait to venture into that part of real estate. Selling a house can earn you instant profit, however, renting it out may start out slow at first, but the profit is consistent and you will earn more money from it in the process as long as you are patient enough.
While there could be other reasons why you are renting out your property, it could be that you have been trying to sell it out in the market for so long and so far the progress or process of you coming towards the way of achieving a break even seems a bit hazy at the moment or you just want to gain income by serving as a landlord. Worry not, for we here at Home Hunter Academy by Nicholas Haley, we will be introducing to you the idea on how to turn your rehab home into a rental property through these following steps.
Depending on where you are, certain processes of acquiring your permit may vary. However, as it is a business, a permit will always be required. Before you get your permit, you will have to register for it, expect that an inspector will be checking out your place whether at a time when you least expect it(some of them tend to do this) or at an agreed time. The inspector will typically check the heating, electrical wiring, appropriate exits in case of emergencies and other safety precautions for the prospective tenants.
Securing an insurance for your property will be one of the smartest decisions you could ever make. Whether we like it or not, we will face unprecedented situations in the future that we may never be internally prepared for. However, that does not mean we cannot do anything about it. Securing an insurance for your property will protect you from any emergencies that may involve your tenants, such as an inspected minor fire, the aftermath of a storm and other situations that may decrease the value of your property, an insurance will help you out on this.
As what we have mentioned multiple items in the previous blog posts, if you want to add value to your property, you have to make an effort to manage repairs and create upgrades such as installing the latest version of the heating system or keeping your tenants secure 24/7 with a state-of-the art security system. Some upgrades and repairs will not cost you much, however, it is just as important to impose on these repairs and upgrades.
You will not be selling your house, therefore, you have to be able to offer a rental fee of your property which is much smaller than your selling price. For sure, you will have competitors around your area, however, you do not have to match their price, your rental fee will always have to be based upon your property value but make sure you do not go overboard, create a realistic price wherein you will still be able to rake in prospective tenants.