If you’re thinking about renting out your primary residence, there are some things you should know.
Many homeowners choose to rent out their primary residence for many reasons. Whether this occurs because of a work relocation or other reasons, this scenario does happen more often than you think. This isn’t as easy as putting your house and rooms on Craigslist and waiting for the responses to come in. If you are looking at this as an option, there are several things that you will need to consider.
- Hire a Management Team
If you’re going to be living in a new area, you may want to consider hiring a management team that will look over the property while you are gone. A good team will be able to handle repairs, mow the lawn, and take care of all of the other things that must be done around the house.
- Purchase Landlord Insurance
When you move out of your primary residence and start renting it, you’re going to need to change the kind of insurance policy that is attached to your home, and get landlord insurance. This type of coverage will insure damage to the property and liability as well. You should also put a clause in your lease requiring your tenants to get renters insurance.
- Research the Market’s Rent
As a landlord, you’re going to have to determine how much you’re going to be charging for rent. If you charge too little, you’re going to be losing profit. If you charge too much, you’re not going to keep the house or room rented. Looking at your neighborhood’s market should give you a great starting point.
Before you move out of your primary residence, take a close look at your home insurance policy to ensure you have the right amount of coverage. Contact the independent insurance professionals Perry & Carroll in Elmira, New York before you go to have a good idea of what you should be doing.