If you’ve decided to rent out your property, you probably realize the potential for earning rental income while your asset grows in value. Real estate investments offer unique financial rewards, but they also come with a lot of risk. Mistake-making is part of the process.
We want to help you avoid those mistakes, and today we’ve put together a preliminary list of the things you’ll need to do first when you’re ready to convert your home into a rental property.
Make Your Charlotte Rental Property Ready for the Market
Your first step is to make the property rent-ready. Don’t start advertising the home and showing it to prospective tenants without first having it cleaned and making any necessary repairs. You will have a lot of trouble finding a tenant if the paint is faded and the floors are scratched or the appliances look worn and dated.
Make a complete inspection of the property. Fix anything that isn’t working and consider making updates and upgrades that will help increase your rental value and your tenant quality. Fresh paint is important, clean carpets or hard surface flooring is required, and curb appeal is critical. Make the home look inviting so that when it’s time to market and show it, tenants will be eager to apply.
Adjust Your Insurance Policy
If you’ve decided to rent out a home that you once lived in yourself, you’re going to have to change your insurance policy. You probably have a homeowner’s insurance policy, which protects you and your home and your possessions. It’s time to convert that to a landlord policy, which shouldn’t cost too much more. The coverage will be different, however. You’ll still be covered for liability, and you’ll have protection if your home needs to be repaired or replaced. However, none of your tenant’s personal property will be covered. This is why it’s essential to require renter’s insurance from your tenants.
Talk to your insurance agent so you can be sure you’re fully covered once you become a landlord. You’ll want to be protected against things like loss of rent.
Pay Attention to Pricing
You’ll want to price your Charlotte rental property correctly and competitively. If you’re not sure what the latest real estate trends mean for rental homes similar to yours in your neighborhood, consult a professional Charlotte property manager. You have to get the pricing right, otherwise it will cost you.
Naturally, underpricing your home will mean a loss of potential rental income over the entire term of the lease. That’s a mistake you want to avoid. What many landlords fail to realize is that overpricing your home is just as dangerous. If you’re even $100 a month over the market rate, you’re going to have a long vacancy, and you’ll never be able to earn back the rent you lose while your home remains unoccupied. Find the right range, and be willing to remain flexible.
Find a Charlotte Property Manager
Another one of your first steps should be partnering with a Charlotte property management company. While you can certainly lease and manage a rental property on your own, smart investors know that professional management is safer and results in higher incomes and lower expenses. We can help with finding the right tenant, following all the fair housing laws, and keeping your investment well-maintained.
For more information on moving forward with your plans to rent out your Charlotte property, contact us at AM Realty. We’d be happy to work with you.
