Converting your home into a rental builds equity, but only if you treat it like a business, not a side hustle. Here is the right way to make the transition:
- Prep & Price: Fix safety issues and refresh aesthetics (like paint and flooring) to justify higher rent. Research local market rates to avoid costly vacancies.
- Know Your Numbers: Factor in landlord insurance, property taxes, and a “rainy day” fund for repairs. If the workload feels heavy, expect to pay 8–12% of the rent for a property manager.
- Screen Ruthlessly: Quality beats speed. Always verify income (aim for 3x the rent), run background checks, and call previous landlords. A bad tenant is far more expensive than a month of vacancy.
- Stay Professional: Build a network of reliable contractors. Use professional tools—like custom business cards—to stand out when meeting vendors or prospective renters.
The Bottom Line: Protect your investment with a rock-solid lease and proactive maintenance. Decisions grounded in data, rather than emotion, will ensure long-term cash flow.
Read the full article: https://proximainvestors.com/how-to-convert-your-property-into-a-long-term-rental-the-right-way/