How to turn your home into a rental property

Easy Ways To Increase Your Rental Property Income In 2018

Do you own a home in the Central Valley and are planning on turning it into a rental property? If so, you’re making a smart choice.

Now is a great time to become a landlord because there’s never been a stronger demand for rental property in California and rentals are at a premium so it’s possible that you will be able to ask a premium rent for your home.

Tips For Turning Your Home Into A Rental

  1. Make sure it’s worth it As McGillivray says, the cost of renovations has to be able to pay itself back within two years rent. Scout out local markets, get a professional opinion, and be sure to watch Income Property. Because, hey, who doesn’t want to make a couple of bucks on something they need anyway?

  2. Tag team, if you can To use a cliché, two heads are better than one, and home-owning is no exception. Getting to your desired final product is a journey, and having a teammate to share frustrations, anxieties and most importantly, costs with is invaluable.

  3. The best way to learn is to go through the experience As one homeowner in the show puts it, “you can read as many books as you want, but you have to experience it.” Every home is unique, and every home will reveal its own problems and potential solutions.

  4. Whatever you budget, add 25 per cent When renovating your space, despite what a professionally quoted budget says, add 25 per cent, just in case. If you don’t go over, nothing lost. But if you do, at least you were expecting it.

  5. Houses are like onions The more layers you peel back, especially while demolishing, the more problems you’re going to find. Count on hidden gems like mould, live wires and any other hidden costs, just in case.

  6. Consider all the options If you have a three-story plus basement house, why just rent out only the basement? As we learn in the first episode, doubling the space not only allows you to live mortgage-free by increasing the rent, it also increases the value of the home. But it also may not be the option for you, especially if you plan on expanding a family or you want access to your backyard.

  7. Make sure the space is livable If the kitchen has zero counter space and the bedroom can only fit a bed, not only is it going to be hard to find someone to rent out your unit, but think of the types of people who might be wanting to rent out your unit.

  8. Don’t skimp on the drywall, especially on the ceiling Not only do you want a fire barrier between you and your new housemates, you might be thankful for a little bit of sound-proofing in the long run.

  9. Start on the outside A separate entrance is key when renting out a basement, especially if you don’t want to mingle too much with your new lessees. And you might want to make sure there are no potential lawsuits hanging around — such as slippery stairs or rotting wood.

  10. Don’t turn your house into a home… right away If a long-term investment is what you seek, turning your space into a home right off the bat isn’t going to help pay those accumulating bills. Your No. 1 priority should be making your home into an income source, or at least a manageable entity. 

Get Property Management Here

For Central Valley Property Management contact RPM Central Valley today by calling us at (209) 572-2222 or connect with us online.

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