As per Russ Whitney’s idea: in a housing market when owner plans to move, converting a home into rental property is a smart option. It helps to manage property expenses and allow landlord to plan necessary move while some buy the house with an intention of turning it into a rental right from the start.
There are many reasons Russ Whitney says such as investors may plan to buy a new home after renting out the old one while others who’re thinking of relocation but unable to sell. There are matters you need to understand and start reviewing your mortgage contract, if there’s a loan on the property.
If your property is insured, make sure property insurance document is updated before conversion. Your home is unprotected if it lacks insurance or document has expired. It is very important to know about terms of home insurance.
Learn the laws
To learn the laws pertaining to real estate rental, conversion, licensing and registration some rules and regulations may differ says Russ Whitney. Carefully read and understand the document along with deposits and eviction laws.
Decide the term
Make sure you decide the term of rental that can be full, quarterly with homes.Assemble a list of contractors as well as service personnel and discuss about untimely problems such as broken pipe or severed power line for speedy repairs.
Finalize the document
When everything is finalized, request your attorney to prepare rental contract for tenants and get the application ready. Consider buying home warranty even if it costs you extra to make repairs and maintenance more manageable.