How to Turn Your Home into a Rental Property?

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How to Turn Your Home into a Rental Property?
Are you planning to switch to your new home and
want to make your old home into money-making
property? If Yes, then youre at the right
place! Theres good news for all land owners who
want to make money from their properties without
selling them. You can easily turn your own home
into a rental income property. Renting a home is
one of the most efficient ways to make money
through your property by renting out the space
monthly. It gives you a consistent income, and
youll stay as the owner of the property, and
your rental income increases from time to time.
There are numerous reasons to turn your home into
a rental property. If you want to make rental
income from your property, then keep reading this
guide. In this guide, weve covered the
step-by-step process of turning your home into a
rental income property. Lets get
started! Heres the step-by-step process to turn
your home into a rental property Step 1 Decide
if you can handle being a Landlord Many
landowners think its easy to become a landlord
and ask for rental money every month, but its
not as easy as it seems. There are numerous work
responsibilities of a landlord, including
regular calls, maintaining property conditions,
and sometimes overdue collecting rent can be
complex. Theres no doubt that Rental Income can
be a great source of income for a landlord, but
this income comes
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with problems that a landlord has to deal with
regularly like unexpected damage, maintenance,
security deposit and many other factors. However,
you can do it on your own, or you can hire a
property manager who can handle all these
problems without letting you disturb anything.
You need to pay some amount to the manager, and
you can enjoy rental income without any problem.
So its completely dependent on your choice to
become a landlord. You can do good research and
find out the responsibilities of a landlord and
then make a fair decision. Step 2 Wait for a
year before turning in the rental property If you
have a mortgage on your home and are planning to
turn it into a rental property before 12 months,
then it can be considered mortgage fraud, but it
depends from place to place. So you should read
the contract carefully before taking a mortgage
for the property and try to stay at least for a
year and then plan to turn it into a rental
property. There are many documents you need to
look at for a mortgage because if you turn your
property into a rental property before 12 months,
then intentionally purchasing a home for rental
income can be considered fraud. So its important
to read your documents carefully and then act
accordingly.
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Step 3 Check if you can get Another Mortgage If
youre planning to shift to your new home and
want to buy another property to live in, then you
need to apply for a mortgage and check if youre
getting the appropriate mortgage to buy another
property. For this, you should consider any
professional legal consultant to know about the
mortgage and help you get a mortgage to buy
another property. Step 4 Change your Insurance
Policy If you have homeowner insurance and are
turning your home into a rental property, then
your homeowners insurance will no longer be
enough to cover your property. You need
landlords insurance to make your rental property
protected. Landlords insurance is more expensive
than a homeowners insurance, but it comes with
numerous benefits like

• Structural damages to your property
• Maintenance equipment
• Outdoor features like sheds, pools
• Minor accidents and injuries on your property
• Legal fees
• Loss of rent or damaged property
• Damaged caused by fire, lightning, and hail

These are some essential things covered in
landlords insurance. Step 5 Learn about Tax
Changes To become a landlord, you need to know
some basic tax rates on your rental property.
However, when youre turning your home into a
rental property, then you need to qualified tax
deductions for rental property expenses,
including

• Property taxes
• Mortgage interest
• Repairs and renovations
• HOA fees
• Landlord insurance policy
• Utilities

You can consult a legal firm to learn about legal
formalities and tax rates on your rental property
to understand the tax changes. Step 6 Make
sure to Inspect your Property Before turning your
home into a rental property, you need to hire an
inspection officer to check your entire property
thoroughly and find all the issues that must be
fixed before
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• turning it into a rental property. Its important
  to inspect your property via experts and find all
  the problems like plumbing, termites, flooring or
  structure that require improvement. Once you have
  a complete list of valid property problems, you
  need to invest money and fix all these issues to
  keep your home safe and prepare for rental
  property expenses.
• Step 7 Prepare your Property
• After fixing all the issues in your property,
  its time to prepare your home into a rental
  property and make it more attractive and
  appealing for rental. You can make major changes
  like new wall painting, outdoor garden finishing,
  and upgrade your interior in the kitchen,
  bathroom or anywhere required.
• Once you have a well-furnished rental property
  with working appliances, then it increases the
  chances of getting a good rental income.
• Step 8 Set the Rental Rate
• Now, you need to set the rate of your rental
  property, but its not easy to set a rate for a
  landlord. You need to consult a professional real
  estate agent like Amar Realtor to set the best
  rate for your rental property. Setting up rent
  for your rental property requires researching
  nearby locations like rental property in
  California or anywhere you want and finding
  online rent for similar properties to get an
  idea. Then, you can set a reasonable rate based
  on your property condition, location, amenities,
  and facilities.
• Step 9 Set the Rules
• To maintain your rental property, setting some
  rules for paying guests is important. You can add
  all these rules in the agreement lease and let
  your paying guests check the document carefully,
  and if they agree with your rules, you can
  proceed further.
• You can set the rules as per your convenience
  like
• How many people can occupy your home?
• Allow pets or not
• Decide the date for rental payment
• Maintenance costs like yard, garbage and pest
  control
• Duration to stay can be fixed
• And many other rules you can set per your
  requirements and find the best fit for paying
  guests.

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Hiring a property manager for your rental
property can give you great relief from all the
stress and problems with a landlord, like
collecting rent, maintenance, finding tenants and
documentation. So its good to have a consistent
rental income with peace of mind, which can
happen when you hire a property manager. You can
research and find the best real estate property
manager for your rental property and get ready to
turning my home into a rental property. Conclusio
n Converting home into rental property can give
you amazing benefits and the best option to make
money without selling your property. But it comes
with many complex processes and documentation
that are not easy to handle. At this point, you
can take help from Professionals like Amar
Realtor to help you manage your rental property,
take complete responsibility for the landlords
tasks, and keep you free from the rental property
process. Contact Amar Realtor for your rental
property management needs For more information
about buying a home in the Bay Area, contact us
today. We have a team of professionals ready to
help you have the best home buying process
possible. For more information about Bay Area
real estate and deciding when to buy a home,
contact me today! Amar Realtor offers expert real
estate services with proven results in the
Cupertino real estate market as well as outlying
areas including homes for sale in Milpitas, San
Jose, Campbell, and properties in San Mateo
County, homes in Contra Costa and Alameda County.