Making the transition from primary residence to income-generating rental can be a smart financial move, allowing you to collect rental income while also building home equity. However, the process requires thoughtful planning and preparation to ensure it goes smoothly.
Converting a cherished home into a landlord-tenant arrangement may feel emotionally and logistically daunting. You may be wondering – how will I choose responsible tenants? What upgrades or repairs are required to rent it out? How will taxes, insurance, and financial implications shift? While renting out your home has the potential to provide excellent passive income and wealth-building, the key is approaching the process strategically. Read on, and let’s explore how you can do it.
Preparing the Property for Renters
Before listing your former home for rent, some key steps should be taken to make it attractive and appealing to potential tenants. Proper preparation also shows renters that the property is well-cared for and move-in ready. Focus on essential maintenance, deep cleaning, decluttering, staging, and creating a welcoming ambiance.
Perform Essential Maintenance and Repairs
While you may have maintained your home properly as an owner-occupant, it’s wise to do a thorough assessment with fresh eyes before allowing tenants. Walk through each room and take notes on areas needing maintenance or repair – chipped paint, sticky doors, dripping faucets, cracked tiles, squeaky hinges, damaged screens, etc. Also, inspect the roof, siding, windows, plumbing, electrical, HVAC, appliances, flooring, and security system if applicable.
Perform preventive maintenance by checking and replacing air filters, testing smoke detectors, treating pests if needed, servicing appliances/HVAC, and examining caulking/weatherstripping. Knock out all minor repairs and be sure structural, mechanical, and electrical systems are in good working order. Consider upgrades like energy-efficient appliances or new carpeting if the current condition seems worn. Investing in key maintenance makes your unit much more rentable as it also prevents headaches down the road.
Deep Clean from Top to Bottom
Even if you keep your home tidy, now is the time for an intense, meticulously clean, getting into every nook and crevice. Remove all personal items and fully clear closets, cupboards, and shelves of clutter. Thoroughly wash walls, floors, windows (inside and out!), bathrooms, kitchen, appliances and cabinetry. Ensure there are no lingering odors or stains. Hire professional carpet/upholstery cleaners if necessary. A sparkling, clean, fresh-smelling property makes an excellent first impression on rental prospects touring your home.
Stage Each Room
The next vital step is home staging, positioning furnishings, and decor to help prospects envision residing in the space. Remove excess furniture and create an inviting, uncluttered flow in each room. Rearrange layouts to define spaces like a sitting area in a bedroom or designated dining zone.
Use neutral bedding and stylish accents to help visitors picture their belongings occupying the home. Bathrooms should feel spa-like and peaceful. Kitchens and living areas should feel spacious and get plenty of light. Ensure storage space, such as closets, appears roomy. The goal is to help prospects see themselves enjoying day-to-day life in your rental while showcasing the best features of your property.
Welcome Tenants with Cleanliness and Hospitality Touches
Beyond repairs and staging, take a hospitality mindset by anticipating renters’ needs upon move-in. This includes providing cleaning tools/products, extra linens, vacancies in storage areas, shelf space in kitchens/bathrooms, hooks/hangers in entryways, cable/internet connectivity, garbage cans, and an instruction guide for appliances.
Check safety equipment like fire extinguishers, carbon monoxide detectors, outdoor lighting, and alarms. Ensure all keys/remotes work properly. Add welcoming touches like a houseplant, guest information binder, or local menus. First impressions count when tenants initially view your rental. So go above and beyond to show them how move-in ready, clean, and well-maintained your property will remain throughout their tenancy.
How to Find and Screen Tenants
A key step before listing your property is creating an effective plan to market the rental and screen applicant tenants. Take a strategic approach to finding responsible long-term renters who will care for your former home. Consult a property manager in Northern Virginia if you want to be more involved in the tenant screening process since it’s your right as an owner.
Create a Marketing Strategy to Attract Renters
Craft an appealing online listing on platforms like Zillow, Trulia, Realtor.com, or Facebook Marketplace. Include attractive photos showcasing cleanliness, upgrades, and staging of each room. Emphasize details that will entice high-quality tenants – recently updated fixtures, energy-efficient appliances, spacious floor plan, ample storage and closets, low-maintenance yard, and neighborhood amenities.
When you decide to rent out your property, research rental pricing to avoid overpricing your rental. Then, you can price it according to the listings. Market to both families and roommates if the configuration suits it. List availability date, rental terms/rate, deposit amount, and tenant requirements like income and credit score minimums. Promote the listing through your social networks as well. Placement on multiple sites and word-of-mouth exposure help gain more viable applicants.
Establish a Standard Tenant Screening Process
As interest comes in, it’s essential to qualify applicants carefully using a standard screening process. A detailed rental application is required to collect the key identity, employment, income, rental, and credit history of every adult tenant. Verify applicants’ identities with photo ID checks. Run credit and background checks to confirm reported income, as well as scan for red flags like bankruptcies, legal issues, or prior evictions.
Call previous landlord references to hear about payment history, property care, complaints, etc. Set income requirements mandating combined monthly income equal 2-3x the monthly rent. An application fee helps deter less serious prospects. Along with that, you can define rent payment timelines as well.
Meeting applicants in person also provides a sense of responsibility and commitment to your standards. Give a tour while noting questions asked, attitude, politeness, condition of the current home, etc. By establishing stringent qualification criteria and carefully screening every adult occupant, you can filter prospects until only responsible renters remain. Doing your diligence reduces risks when allowing strangers into your beloved former residence!
Final Words
These preparation investments take time upfront. But they vastly improve how rent-ready your property appears, attract more interested prospects, increase perceived value, and help you screen for quality long-term tenants. So don’t skip corners when readying your former home for its next chapter!
