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How to Turn a House Into a Long-Term Rental Instead of Selling It

 

Renting out real estate can be a great form of passive income, helping to bring in extra money with minimal effort. That said, before you can start collecting easy cash, you need to put in some time and financial investment. Careful planning will help ensure a successful long-term rental property. This guide provides tips on how to get started, covering everything from finding a property to marketing it to potential tenants.

 

Get an understanding of local real estate laws

 

Before you become a landlord, take the time to educate yourself about your area's rental laws. Knowing the responsibilities of a landlord will help prepare you for the job. NOLO offers a roundup of landlord-tenant laws on a state-by-state basis. Also, make sure you understand the tax implications of renting out property. This will be taxable income and you should prepare your tax paperwork accordingly.

 

Find the right property in the perfect location

 

You don't want to struggle to find tenants. Choosing a property in an attractive location will make your life a lot easier as a landlord. Beachside places are a hot commodity and worth investing in, for example. You can trust a local realtor to help you find the perfect property. For help getting a place in Myrtle Beach, South Carolina, try The Boyd Team. They are local specialists with insider insights into the area.

 

Add upgrades to make the house more marketable

 

Once you have your property, consider what you can do to make it more attractive to potential tenants. If the interior walls are chipped and peeling, give them a refresh with peel-and-stick wallpaper. You can order customizable wallpaper for your home online and, since it's custom printed, you won't have to worry about your design being out of stock. Peel and stick wallpaper is easy to apply, as you can reposition it as needed.

 

Create compelling advertising material

 

To attract high-quality tenants, you need to market your rental property accordingly. Photographs are everything. Avail provides tips for taking pictures that will help you rent out your place fast. Pointers include taking photos when the unit is clutter-free and clean, scheduling photo shoots during the daytime when there's plenty of light, and paying attention to decorative details like throw pillows.

 

Vet your tenants thoroughly

 

Once you start getting rental applications, don't simply settle on the first one. It's important to screen your tenants carefully. You can check an individual's credit reports, run criminal background checks, and ask for references, for example. Just make sure that any questions you ask are consistent with Fair Housing regulations. For example, you should be asking all tenants the same questions.

 

Create professional rental contracts

 

Found the perfect tenant? Fantastic. Now, it's time to create a good rental contract. Create a comprehensive lease agreement that includes the names of all tenants, occupancy limits, rent amount and how it's to be paid, and terms of tenancy. You should also cover topics like repairs and maintenance. If you've never created a rental contract before, it's advisable to have a local lawyer help you with this step.

 

Figure out how you'll manage the property long-term

 

A long-term rental property is largely a source of passive income. However, it still requires some work. For example, as the landlord, you are legally responsible to ensure the property is safe and liveable. This means taking care of standard maintenance and repairs. If you aren't interested in doing such tasks yourself, you can hire a property management company. They will take care of the day-to-day duties.

 

A rental property can be a great way to make some extra money—if you set it up correctly. The above guide provides the information you need to get off on the right foot.

Learn more about buying, selling, and renting properties successfully via the blog.