Are you moving to a bigger city? Or maybe you’re looking for a lucrative side stream of passive income that you can enjoy for years to come. In either case, renting allows you to diversify your investment portfolio and reap the benefits – long term. Below are six simple steps to launching your rental experience properly and efficiently.
1. Did you check with mortgage or insurance companies? This step is critical, as there may be additional paperwork or requirements of the homeowner prior to starting the rental process. For example, some loan programs (like FHA) require that the owner occupy all or part of the home for a specified period of time. Insurance is important to follow up with, as your current agreement may not provide provisions for rentals. You will need to inform them of your plants to rent out your property, instead of occupying it. Be sure to stay informed of any new, current, or changed local, state, or federal regulations. This applies to homeowners’ associations as well, as they can limit rental opportunities or altogether ban them.
Did you know that there are specific tax laws that apply to landlords? That’s right – the IRS has an entire set of regulations that you should be aware of. For example, if you rent out your house for more than 14 days, you are considered a landlord for tax purposes. That means you have to report your rental income. A side benefit to this is that this opportunity allows you to claim additional deductions. A step to help streamline your future rental endeavors is to find a great accountant or bookkeeper.
2. Make an impression on your renter. You can make a great impression on your first renter (and many after!) by hiring professional cleaners to ensure that the place is tidy for their move-in date. This is considered a kind gesture but is not mandatory. If you cannot afford this, simply put in the hours to deep-clean the living space and make sure that it is move-in ready.
3. Spruce up the landscaping. This step can help you get a renter quickly – just off of curb appeal. A key part of your rental success lies in aesthetic appearance, increasingly so as social media reviews and services stay steadily on the rise. This step sets the tone for how you’d like your property treated while it’s occupied. First impressions of things like the front door, pathways, flower beds, and lawn/landscaping really do matter – which is why you should evaluate if any replacements, updates, or design changes should be made before accepting a renter.
4. Is your renter safe? New renters move in and will expect a safe living area. This means that you should not accept a renter without first making sure that the smoke and carbon monoxide detectors and other safety features, such as motion-activated outdoor lighting, are operating in the way that they should. You can use this time to identify any other potential risks in the home or surrounding spaces.
5. Include welcoming materials in your home. Nothing says “thank you for renting our home, we are glad you’re here” than a guide to local amenities, a small gift or a ‘thank you’ note from the landlord. You can display this in a cute basket, or other care package. Consider adding in move-in essentials in the wake of the pandemic, such as hand sanitizer, sanitizing wipes, or cleaning supplies.
6. Enlist the help of a (local) expert. With our full-service Danville property management services, you get a wide range of services and a full team of skilled professionals with the expertise to provide you with the highest level of service and the maximum return on your investment. We work in the areas of:
- Walnut Creek
- Dublin
- Black Hawk
- Kensington
- Oakley
- Concord
- Pleasant Hill
- Moraga
- San Pablo
- San Ramon
- Lafayette
- Orinda
- Hercules
- Clayton
- Danville
- El Cerrito
- Pinole
- Martinez
- Alamo
- Richmond
- Pittsburg
Renting is hard – but our services make your process seamless. The experts at PMI Contra Costa work with trusted vendors to bring you the key professional services you’ll need in the industry, helping you protect and maximize the investment in your rental property. We want to eliminate the headache and worries of managing a rental property on your own. Our expertise will make your Contra Costa County rental experience a breeze – we have streamlined processes that will help you achieve the success you crave in your real estate ventures. We’ll help you get optimized rental income out of your property, determine your cash flow from monthly rental value and gain critical insight into local real estate market conditions.
