Converting Your Home into a Rental
Why Would I Convert My Residence into a Rental Home?
There are plenty of reasons why you would choose this route.
- Extra passive income - Moving to a new home means adding a new house payment to your monthly bills. Depending on where you move to, the cost of living might be higher than your previous location. In addition, you might not be finished paying off the old residence yet. If this is the case, two mortgages can stretch anyone’s wallet. By renting your old home, you can make extra money to help you stay afloat in this economy.
- Postpone selling - While the housing market favors selling at the moment, that won’t always be the case. When the housing market is struggling, it can be difficult to close a sale on your home. By renting your home, it gives you time to allow the market to reset, so you get a better return on your property.
- Keep the property - If you decide to rent out your home, it remains yours. You get to decide who rents from you, what parameters or guidelines you require, and it stays in your name. If you ever wanted to return back to your old town or provide a residence for your children or a friend, you maintain that option. And with the memories made in that old home, this might be an appealing reason for you to lease it instead of selling it!
- Creating memories for others - Just like the memories your family has made in that home, you provide an opportunity for other families to fill the house with experiences and make memories that will last a lifetime. The sense of gratitude you will receive makes the renting option so much more palatable!
How to Convert My Residence into a Rental Home
If you’re convinced renting your former residence is the best option, we want to help you get the process started. When you try to use this old residence as an investment property, you have to consider several factors before renting out for the first time:
- Mortgage - Remember those papers you signed when you moved into your older home? You need to recall how long you’ve lived in the home as the primary resident. Some mortgages state you have to live there a certain amount of time before ever renting. If you were to lease the place before that time passes, you could be in trouble for mortgage fraud. Nobody wants that on their record! You may need to consider refinancing in order to make sure your mortgage complies with rental requirements.
- Taxes - Taxes are handled a bit differently when using your home as an investment property. One of the benefits of renting the home is the tax deductions for which you are eligible! The utilities, repairs to the home, insurance, property taxes, and more can all be deducted from your annual taxes.
- Home Insurance - Before making the leap into leasing your property, you should consult with your home insurance agency and switch your current insurance plan to a plan for rental properties. Sometimes, this can even lower your homeowners insurance rate! You should consider getting personal liability insurance that can help prevent a tenant from potentially filing a lawsuit against you.
Getting Property Management Help from Asheville Phoenix Properties
If you decide to rent out your old residence, that is great! As you begin this process, you need a property management company that can handle every aspect of your property rental. That is where the team at Asheville Phoenix Properties can help.
Contact us today to help you navigate this new world of investment property management. We will answer your questions and help you determine whether this is a good option for you and your old home. Our team can help you find renters and make sure your old home is maintained and protected.
If you have rental property in western North Carolina, Asheville Phoenix Properties has the experience and expertise to make it as profitable as possible.