Are you deliberating turning your principal place of residence (PPOR) into a rental property? Many homeowners use vacant properties or space within their homes to set up a passive rental income stream.
Each homeowner has a different situation, which requires different preparations. For instance, some buyers actualize the high-yielding potential of a property, renovate it and then rent it out to multiple tenants. Others rent out rooms, basements or other space in their homes to benefit from a rental stream and put it towards their monthly mortgage payments.
Both are great strategies, but when you decide to rent out your home or some space in your home, it is vital to ensure that the property is fit for purpose. Aside from all the legally-binding requirements, there are some undertakings that are vital to ensure that your house is fit to attract tenants and ensure their comfort.
Keep reading to find out practical solutions to preparing your home for tenants.
Health & Safety Compliance
It is vital to ensure that property to be rented out is thoroughly inspected and examined to ensure its compliance with the local health and safety standards. This is a vital undertaking as it can lead to legal implications if the safety or health of the tenant is compromised because of the homeowner’s negligence.
Homeowners must prioritize a thorough inspection to rule out the risks of mold, mildew, asbestos or other issues that can endanger the health of the tenants. It is vital to examine the property for risks of water damages, or fire, and all the exits and entry-points must be sealed adequately to prevent such risks.
It is also crucial to ensure that all the doors, windows and locks are upgraded and fully-functioning to prevent break-ins or any risk factors that can endanger the safety of your tenants. Homeowners are strongly advised to conduct research on the local health and safety laws to understand their obligations and ensure their compliance.
A Thorough Inspection
If you’re renting out a multi-family building or a property with multiple portions or living accommodations, it is vital to undertake a thorough and highly-detailed inspection. A detailed inspection is instrumental to ensure that the property is in good shape and doesn’t feature any structural or safety damages.
It is normal for homeowners or landlords to be neglectful of repairs and maintenance needs when the property is vacant. But potential tenants who come in for viewings will be quick to highlight all potential damages and repair needs. A property that is in good shape will also attract tenants and make them willing to adjust to your rental demands.
A detailed inspection is likely to highlight certain factors that you have never even considered. It often comes as a shock to most homeowners that their property isn’t as well-maintained as they believe it to be.
Electric Wiring & Plumbing
Two aspects that must never be ignored, plumbing and electric wiring are crucial to support modern life quality that all tenants expect to enjoy. It is vital to undertake thorough plumbing and electric wiring inspections and address all repair needs before your tenants move in.
You may be content with a leaking faucet or a broken lightening fixture, but your tenants will highlight it immediately and stress that you get it fixed without delay.
Pest Control & Inspections
Here’s another reason why a building inspect is a vital undertaking to highlight all the potential risk factors that can harm your tenants. It is common for homeowners to spot a few wasps or bees without realizing that their property is nurturing a mammoth nest somewhere in a hidden corner.
Pest control and inspection is instrumental and it can land you in heavy trouble if you neglect it and your tenant has to suffer damages or insect bites. It is crucial to ensure that your property is free of all kinds of pests, cockroaches, wasps and rodents before your tenants move in.
If your tenants spot any pests crawling around the property, it will give them a stronger edge to negotiate a lower rent on the agreement.
A Deep Clean
Do you have a strong cleaning ritual to keep your property spick and span at all times? Even if you do, a deep clean is essential before renting out your property. It is hard to clean all the nooks and crannies, especially when you have a lot of clutter lying around.
De-cluttering is an integral aspect of a deep clean because your new tenant doesn’t want to encounter dirt, junk and clutter upon arriving at your property. Whether you are renting out a furnished space or an unfurnished apartment, a deep clean is vital.
Be sure to clean all the fixtures and furniture that you are renting out as part of the agreement. It is also vital to hire domestic help so you can ensure a well-done deep cleaning process. While you’re cleaning, consider investing in some paint and give the walls a refreshing new outlook.
While insurance isn’t directly relevant to preparing your rental property, it holds great significance when you’re planning to rent out your property. You will have to convert your property insurance into landlord’s insurance, which will require a different policy. Be sure to shop around and explore the market for prices and coverage that works best for you.
Once your property is well-prepared and attractive to rope in tenants, it is wise to hire a competent property manager to address their needs. This is an undertaking specific to multi-family buildings and multiple tenants as addressing their needs can get overwhelming for a landlord.
When tenants move in, expect your phone to keep ringing off the hook because they will highlight various issues and routinely repair matters that need to be address. Outsourcing these chores and complaints does come with charges, but this expense is worthwhile as it will help you enjoy your rental income without the horridly burdensome responsibility of managing tenants.