Many people sell their house to buy a new house. However, if you can afford to buy a new house without selling your current house, you can make significant long-term income by renting out your old house. The thought of this may be overwhelming if you’ve never rented out a house before. However, once you learn how to business works, it can make a high, mostly passive income. Here is a quick guide for how to rent out your house when you buy a new one.
1. Buy your new house.
It will be significantly easier to prepare your house for rent if you aren’t living there. So your first step will be to buy your new house and move into it. When packing and getting ready to move, think carefully about what you take and what you leave behind. For example, houses rent faster when they come with appliances. You may consider leaving your appliances behind and buying new ones. Take time to consider the light fixtures, curtains, and window air conditioners if the house doesn’t have an air conditioner. It would help if you also kept in mind that tenants could destroy anything you leave in the house, so you don’t want to leave anything you have a personal attachment to.
2. Utilize moving services.
495movers.com provides services for the day of the move. You will have a lot on your mind, so getting professional help will aid in the transition. Since you aren’t selling the old house, you may be tempted to drag out the move by leaving the stuff you don’t need right away, or you aren’t sure about it in the old house. Doing this will only prolong your ability to rent out the house. If you need to, rent a storage facility during the relocation process. The moving company can move things to your new house and the storage facility, so you don’t have to worry about it. Professional movers can move your entire home in a day. On the morning of the move, you will need to direct the movers on what goes where in the new home and the storage facility.
3. Prepare your old house.
Once all of your stuff is out of the house, you need to prepare it for rent. If it is an older home and does not have central air conditioning, you’ll want to consider the investment because it will make your house highly more attractive to potential renters, and you can charge more. A ductless AC or a ductless mini-split can provide a central system without the need for ductwork. A ductless mini-split system can incorporate your air conditioner and your heat pump for a fraction of the long-term costs of a traditional HVAC system.
In addition to the air conditioning, you want to look for other small changes you can make to make the house more appealing to potential renters. This may include fencing in the yard or fixing the driveway. You also need to clean the entire house thoroughly. It should be spotless when potential tenants tour it. This may mean getting the carpets professionally cleaned or replaced.
4. Get a contract and follow it.
A lease is a contract between the tenant and the property owner that specifies their legal agreement. The lease will include information like the rent amount, due date, and how it needs to be paid. It will also include rules regarding pets, lawn maintenance, changes to the structure, and grounds for terminating the lease. You must spell everything out in the lease. Do not trust anything to a verbal or handshake agreement.