Thinking of Selling Your Home?

Consider a Rental Property Conversion Instead

Planning to move soon? If so, your first instinct might be to sell the home you currently own. However, that’s not always the best option. If you have the means to do so, turning your current home into a rental property can be an exciting — and lucrative — decision. Although it’s not the right move for everyone, people who have what it takes to run a rental property often find it’s a wonderful way to bring in extra income while boosting their investment portfolio.

When it comes to starting any new business endeavor, allies are essential. Here’s a look at some of our best advice for turning your previous home into an investment property.

Think of Yourself as a Business

One of the easiest pitfalls to stumble into when starting your investment property journey is to think of yourself merely as a homeowner rather than a business owner. Once you become a landlord, however, it’s not just the property you’re in charge of. You also have a responsibility to your renters, as well as new tax considerations to keep in mind. That’s why it’s so important to put yourself in a business ownership frame of mind from the very start.

One way to do this is to register your property rental business as an LLC. This can give you some legal protections and can even offer some tax advantages under the right circumstances. Depending on your financial situation, you may be able to change your home’s ownership to the LLC, or use funds you grow through your endeavor to buy more investment property down the line. If you do decide to expand later on, becoming an LLC from the start will put you in a strong position when that time comes.

Improve Your Property

When you sell your property, you have the option to take a hit on the price tag for a buyer who might be willing to fix up odds and ends on their own. If you plan to rent it, however, you have to take a different approach. Renters are attracted to properties that are already in good shape. After all, they won’t have the ability to fix the house up for themselves. That’s why it’s so important to make upgrades and improvements that will help you attract good tenants.

Give your home a fresh coat of paint in an attractive, neutral color. Upgrading the floors is often a good call, as well. This will give your home a fresh new look and show potential renters that you take pride in the property.

Also, have an inspector let you know if there are any major repairs that need doing. It will be easiest to knock these out before you have tenants, so you don’t have to worry about juggling as many schedules or working around renters.

Hire a Real Estate Photographer

Finally, one of the best tools you can give yourself when it comes to successfully renting your property is a skilled real estate photographer. Many landlords post photos they take themselves for their rental listing, but this is a mistake. Pros know how to highlight your property’s best features and downplay any less attractive details. If you look at amateur and professional photos side by side, the difference is unmistakable.

Before you hire a photographer, ask to take a look at their portfolio. You should also interview them about their experience, rates, and typical timeline from shoot to finished product. This will help you find the photographer who can meet your needs on a schedule that works for you.

Although selling your home is a perfectly fine way to move on after your time there has passed, renting it allows you to get the best return possible from your investment. Since it’s value will continue to rise throughout its time as a rental, you’ll keep your portfolio diverse and your assets growing for years to come.