After working hard to buy a new house, many people look at their old home and decide to sell it. But that is not the only way to make money from it. If you want a continual stream of income, it can be an excellent source once you convert it into a rental property. Here are some tips to make it happen.
Get The Permits And Licenses
Property conversion is not just about the physical parts of the house. It can also mean the legal requirement of the property. Take note that some locations and local governments require that get a permit or a license from them. There are several reasons for this. One is that local governments don’t want landlords suddenly appearing. They are potential sources of revenue.
Additionally, their new tenants might be undesirable for the residents. With permits and licenses, they can control who can operate rental properties so that they meet local standards. You need to consult with them to know what you have to change in your properties so that you can get the license.
Determine What You Can Do Yourself
While going through the bureaucratic process of getting a license, you can also start the renovation process. It is a simple check of what needs to be done to the property. The important thing during this check is to classify whether you can do the renovations yourself or not. The goal of the renovation is to make your property a rental one. This means you need to cut down a bit on expenses to maximize your gains. Labor is the most expensive cost of renovation, so doing things for yourself can mean profits in the future. For example, if your house needs painting, you can do it yourself or ask family for assistance. This is much cheaper than hiring professionals. Only hire experts when the fix is beyond your abilities.
Making Sure It Looks Good
The goal of a lot of these changes is to make the house look more valuable. Similar to when you sell a house, the curb appeal of a home and a better interior can allow you to set your rent at a good price. Potential tenants will not spend money on a rundown place. They want a nice place to live, and you need to present them with that. There are several changes that you can make. One of the most popular ones is the kitchen and the bathroom. Clean them both up and install upgrades like a shower or a bathtub. A lot of renters make their decision on how these two rooms look.
Meeting The Various Legal Requirements
When it comes to legal requirements, several things need your attention. One of them is getting the proper certifications that your home is ready for renting. A rather special requirement in the UK is the need for an electrical performance certificate. You’ll need to get an inspection for EICR. This is an Electrical Installation Condition Report and has an electrician look at your electrical setup to evaluate it so that you can present it to the tenant. They will want to know what to expect when it comes to how large the electrical bill will be and what they can do to lower that. Other legal requirements are checks on gas and fire safety.
Ensuring Tenant Safety
Tenants want to know that they will be safe when they move into your property. For that to happen, you need to make changes in the safety conditions. Update everything so that there is no faulty wiring or leaky gas pipes. Additionally, you can invest in smoke detectors and fire extinguishers. Knowing that they are there can be reassuring to a tenant. It would be best if you also talked to them about what to do in case of emergency and when they should call you so that things get fixed. A home in good condition means fewer accidents in the long run.
Update Insurance
Landlord insurance is much different from the usual homeowner’s insurance. This is mainly because of covers the presence of your tenants. Normal insurance will only cover accidents that occur with you in residence. It won’t pay for damage from your tenants or loss of rent. With it, you can be sure that your investment is safe.
It takes a lot of work to turn a house into a rental property properly. But this investment can be worth the time and money. Even a single property as a landlord can provide you with a good stream of income for years to come. This is perfect for those nearing retirement age.
