1. Understand The Responsibility Involved
First, you must determine whether being a landlord is an obligation you can even handle. The benefits of renting are numerous, such as the ability to deter the vandalism that often plagues an empty home, the ease of tax breaks and the ability to generate income that covers the bills and possibly even creates a profit.
2. Prepare Your Home
In a down market, you probably won’t be able to get away with renting out the home as is. Tenants are more attentive and choosy at such times, because of the increased availability of rental homes, and their expectations are much higher.
3. Hire Professionals (RE/MAX Agents)
Turning your home into residential rental property may seem like a simple task, but it’s important to talk with real estate attorneys and accountants to make sure you are abiding by tax laws, zoning ordinances and local property rules .For instance, the IRS stipulates that all rental income must be reported on your tax return. Sure, you may qualify for tax deductions, but it’s important to know which exact expenses are deductible. Plus, there are limits on how much you can deduct each year, and the amount you are able to deduct may differ with the rental activity reported on your tax return.
4. Set a competitive price
Set the cost of the rent by learning what other rental properties are going for in your neighborhood and community. Remember, potential tenants will be scouting around for deals, so set the rent at a competitive price and make sure you highlight all the most valuable aspects of your home.