Perhaps you are contemplating a move to another city or even another state. Maybe you’ve decided that it’s the right time to upsize and purchase a larger house. Perhaps instead of trying to sell your current home outright, you are considering the possibility of using it as an investment property. In this blog, we are going to cover a few critical steps to becoming a successful landlord.
1. Notify your mortgage and insurance companies. The first thing you need to do is get in contact with your current mortgage company. Certain loan vehicles (such as FHA) mandate that the owner occupies all or at least a certain percentage of the property attached to the loan for a specified amount of time. Next, you need to reach out to the insurance provider for the property and notify them that you may be renting out the asset instead of living there yourself. The existing homeowner’s insurance policy is most likely of the owner-occupied variety, and as such, it is crucial to modify the coverage and ensure that the asset is fully protected going forward. You will also want to research and ensure that you will be following any and all city, state, and federal regulations that are required for landlords.
Ensure that you are aware and up to date on all of the potential tax implications that apply to investment property ownership. If you rent out your house for more than 14 days in a given calendar year, the IRS officially considers you to be a landlord. You will be required to report your rental income for tax purposes. The good news is that now you can deduct rental expenses and also deduct depreciation on your asset.
2. Make sure it’s clean. Tenants will be hesitant to move into a shoddy property that looks rundown or unkempt. Rental properties absolutely must be cleaned thoroughly and professionally prior to the first tenant moving in. This process should be repeated after each tenant moves out.
3. Spruce up the landscaping. The curb appeal of a rental property is one of the most important factors in attracting quality renters. It can also help in keeping it occupied going forward. Additionally, it alerts your tenants to how you expect the property to be treated. Proper property maintenance both inside and out will add to the longevity and profitability of the asset. First impressions really do matter, especially when it comes to real estate. Things like the front door, windows, walkways, storage areas, flower beds, and landscaping all add to the value of the property.
4. Check all safety features. New tenants should never be allowed to move into a property without the landlord first making sure that the smoke and carbon monoxide detectors have been properly tested and are in good working order. Other safety features, such as motion-activated outdoor lighting, and door and window locks should also be in good repair. Be aware of any other possible safety issues that could arise like tripping hazards or plumbing problems.
5. Include welcoming materials in your home. In order to make a great first impression, many landlords will put together a welcome packet that includes a guide to local amenities. A welcome basket or a small gift with a note from the landlord goes a long way. It is extremely helpful to include a guide of things to do nearby, as well as places that you can enjoy a meal in the greater Anaheim area. A list of contact info for emergency and essential services in the area can also be quite helpful.
6. Enlist the help of a (local) expert. With our full-service Anaheim area property management, property owners receive a plethora of benefits. They get access to a team of skilled professionals with the experience to provide the highest level of customer service and guidance. We can set you up to achieve the maximum return on your investment property
PMI Patron partners with the most reliable vendors in the area to help you protect your asset and maximize the return on your Anaheim area rental property. Our primary objective is to completely eradicate the headaches and stress that come along with managing a rental. With the benefit of our proven and streamlined processes, we can help you achieve the success you are looking for. Please don’t hesitate to reach out for additional information.
