More and more homeowners are opting to become landlords instead of selling their home outright.
If your local real estate market is on the upswing and you have decided to rent out your property, there are a couple of things to consider before getting your first tenants in.
Bayut has put together a list of handy tips to help you convert your home into a rental property.
Do: run the numbers
Make sure you do the math before setting the price of a rental. Calculate all the costs of keeping the place going: mortgage repayments, utilities, maintenance, repairs that may come up along the way. If you have decided to rent your home furnished, take into account that the furniture might get damaged and need repairs.
Don’t: rush into setting a price
After doing the math and having a specific price in mind, consider things like the walkability of your neighborhood or any recent renovations that your home has had. Both of these factors increase the value of a property.
Do: upgrade your home
Most likely your city will require a home inspection before you are officially allowed to rent your place out. Repairing and renovating your home will not only increase the probability of finding a tenant faster, but will also enable you to charge a higher rent. Energy-efficient upgrades are also worth considering. The demand of sustainable homes is increasing, as are the value of such homes.
Do: work on a listing
An eye-catching listing can help you attract the best home renters. Take a look at these five common mistakes that real estate agents make to draft your unique listing.
Don’t: rush into managing the property yourself
Managing the property yourself is time-consuming and often stressful. Consider hiring a property management firm for a stress-free rental. Do research on which companies are best in your area and how much they charge. More and more landlords opt for paying around 10 per cent of the monthly rent to a management firm rather than managing the property on their own.