You have likely heard about people renting out their homes for passive income in your area, and you may be wondering how you can get started too. Renting your home as a passive income source is a great way to supplement your income without working extra hours. The only thing standing in your way is performing a few minor home improvements and ensuring you can legally rent your home.
Before you jump into the process, check your local zoning laws and determine what type of rental activity is permitted in your area. Once you have the go-ahead from your local jurisdiction, it’s time to make some improvements.
This guide will take you through every essential item you should consider before you rent your home and a bit on the process of what to do to rent your house as a passive income source. Here is how you can get started:
Check for Safety Standards
The safety standards in your home need to be above board. An asbestos inspection service will be an asset if your home is over two decades old. You will also need a smoke and carbon monoxide detector installed in each sleeping area. Making sure that your home is set up for an emergency and not going to damage any tenants’ health is an excellent start on what to do to rent your house.
Mold is another significant safety concern when it comes to what to do to rent your house as a passive income source. Any damp areas should be inspected and treated by a mold removal professional if necessary. Additionally, check any ducts in the home for dirt and other debris that builds up over time. These can cause health problems in what should be a safe living environment. Letting these issues persist could lead to significant structural damage and adverse health effects for you and your family.
Clean Up the Yard
Your yard must also be safe to rent your house. Ensure that all tools, such as lawnmowers and grills, are stored in an out-of-sight area. Also, ensure that there are no hazards on the property. Trim up any trees or bushes that overhang onto the sidewalk, and regularly clean up trash or debris left on the grounds. This can increase your curb appeal. Working with a tree removal specialist can be a great help as they have all the tools to remove overgrown trees and plants from your property with ease.
You’ll need essential maintenance and landscaping to keep your yard in top condition for renting. You’ll need to regularly mow the lawn and edge along sidewalks, driveways, and flower beds. Additionally, weeds should be routinely pulled — especially those that can spread quickly or have deep roots. Regular landscaping maintenance can keep your property safe and at its best for prospective tenants. Local landscaping companies are a great way to maintain your property without investing in heavy equipment.
Check the Pipes
Your plumbing is another safety concern you will need to follow up on as you learn how to rent your house. Older homes have outdated plumbing, which can be dangerous to the health of your tenants. Hiring a plumber can ensure you get a reasonable inspection and check for the signs of rust, potential blockages, and other concerns that could make your home difficult to rent or dangerous to your tenants. Regular inspections will ensure that your water quality is acceptable and that you can keep your property up to date.
Inspections can also help you change over to the best in high-efficiency appliances like low-flush toilets or water softeners which may help you save money in the long run. Installing these items can be a selling point for tenants and a great way to save money on the upkeep of your home.
Check the Wiring
An electrician should check your wiring if you have a home that is 50 years or older. The coatings in an electrical wire can degrade, and older-style electrical wiring can be prone to fires and other concerns. Some home insurance companies may not even cover you for a fire without regular electrical inspections. By verifying your current electrical lines and checking to see if it would be safe for you to rent to tenants, you can satisfy the electrical requirements as you complete your list of what to do to rent your house.
Renting a home with older-style wiring could be a massive risk for yourself and your tenants, and upgrading your wiring is essential to handle the different devices your new tenants may need to plug in. Your home may need to manage double the number of appliances it would typically be running on the same wiring with tenants.
Repave the Driveway
Asphalt paving can be a significant step to take when you are looking at what to do to rent your house. Expanding your driveway or repaving your driveway will give you the option to lay out parking spots for your tenants. If you don’t currently have the extra parking for a few vehicles, expanding your driveway along the side of your home or adding room for an additional car will be a big selling point.
Repaving your driveway will also add to your curb appeal and show that you look after your property. When a prospective tenant pulls up to your property and sees a fresh driveway, they can verify that you will maintain the appearance of your property. You may also need to regularly repave your driveway to protect it from wear, cracks, and other signs of disrepair that can detract from your property.
More people in your home will make it more difficult to control the temperature. Adding AC or getting routine maintenance for your central air system can be a big part of what to do to rent your house.
Some tenants may only want to rent an apartment or home if it has air conditioning. Air conditioner installation can be a wise choice for attracting more clients and also for reducing your energy bill. Portable air conditioners can leak and damage your property, and a central air system adds value to the property for prospective renters and resale value. Adding AC or getting a routine check-up on your air conditioner will ensure that you are ready to rent.
Upgrade the Floors
Flooring in a rental unit is usually designed to be resilient and easy to clean. If you have older carpets throughout your property or a floor that has many marks or stains, you may be scaring off potential renters with the look of your flooring. Resurfacing wood floors or installing a new floor can make your home more attractive to renters.
Flooring service professionals are the best way to get a floor installed quickly and make sure that you can show your house with the best possible surfaces to attract a potential renter. When looking at what to do to rent your home, many homeowners need to consider the looks of their floors. Floors can fade over time and detract from a room. Updating the flooring will generate more interest in your property because prospective tenants can see how practical your flooring will be.
Patch Up the Roof
Your roof is one of the most critical structures in your home. Tenants will not be interested in renting your property if they can see that you have visible damage to your roof or troublesome areas where your roof could be prone to water damage. Working with a roof repair contractor will ensure that your home can be ready to rent and that you won’t experience severe structural damage to your roof that could be very costly.
You should look at roof repairs yearly rather than just when you are looking at what to do to rent your house. Find a roofing contractor that can perform regular inspections of your property to prevent a need for significant repairs. Most contractors can handle a yearly inspection for patching or potential replacement of your roofing materials.
Get New Windows
One of the main areas of a home that can become inefficient in heating and cooling is the windows. If your home has older-style windows or the windows have not been inspected in some time, there is a chance that your property could be losing heat or air conditioning. The latest window technology comes with coatings that can be beneficial for keeping your home cool throughout the summer months and insulation to protect your home in the winter.
Window replacement with a professional contractor will improve the value of your property and keep your home more attractive as a rental unit. Replacing windows in the area you are planning on renting will make your place look brighter and should be essential to what to do to rent your house. Older windows will be drafty and make your property look outdated.
Consider a Complete Home Remodel
Your home was likely designed as a single-family home without the necessities a rental unit should have. To build a great rental unit that will attract tenants, you might have to change the layout of your home and make it more functional to rent.
When you look at what to do to rent your house, examine your floor plan and where you would divide your home between tenants. Home remodelers can look at your current floor plan and help you see where you could create dividing lines between tenants. A contractor will be able to recognize where you may need plumbing improvements, a separate entrance, ventilation for a kitchen, or functional storage for a tenant.
With a remodel, you can prepare an area of your home or property to be a standalone unit that you can rent out and outfit your living space so that you can be comfortable living without a piece of your home. By creating this division, you can have an attractive rental space for separate tenants or families with all the privacy and amenities they need.
Create a Maintenance Plan
After completing all the work on your home to make it ready to rent, you will need a maintenance plan to maximize your investment and keep your property at its best. Regularly scheduled appointments with contractors and trusted professionals you can call on to make repairs to your electrical system, plumbing, roofing, and more will be a huge help.
Many homeowners renting for the first time will keep a list of handy professionals in their area or hire a property management company to handle the upkeep of their property. Consider what your availability and skills will be for maintaining your property, and have a plan to get help if you need it. Without proper maintenance after finishing the list of what to do to rent your house, you could be facing severe repair costs or a high turnover rate for your tenants who are satisfied with the upkeep of your property.
It can be challenging to know what might be required for you to start renting your home. Although it may take some time and investment to bring your home up to a standard where it can be rented, the effort is well worth the passive income you will generate.
If you are thinking of starting the process, check in on your local zoning laws and if you require legally registering your rental and creating a lease contract with any tenants. From there, it’s up to you and your local contractors to develop a beautiful rental experience in your home.
If you’ve ever thought about renting your home, now is the time to get started and unlock new income for your family!