How Can I Turn My Property Into A Rental Home?
The question, 'how can I turn my property into a rental home?' is one that a lot of people are asking. Read this article to find the answer.
Everyone is moving to Charlotte these days! Recently, numbers have reached over 120,000 new Charlotteans a year. Most people that move to Charlotte? Millenials, especially those that have moved to work in Charlotte's big banking industry.
If you've wondered, "Can I turn my property into a rental home?" to rent out to these newcomers, we're here to help!
Whether you need extra income, want to put a home you inherited to work, or just want to get your feet wet when it comes to property management, we can help show you how to convert your home to a rental property.
Here, we're offering our top 4 tips on how you can be able to tell friends, "I'm renting my property!"
1. Know The Taxes Involved
Yep, this is usually the next question we get asked after, "Can I rent out my property?"
Any money you make from renting will be taxed at your normal income tax rate. However, this means you can still find deductibles! Think about things like mortgage, taxes you pay on the property, maintenance fees, property insurance, and even more are deductible.
Also, speak with an accountant about deducting any depreciation. There are ways to make it happen, but they're a little complex.
2. Look Into Required Permits
Yes, you will need a permit when you turn your home into a rental property. To get it, you'll also likely need to pass a pretty basic inspection to make sure your rental is safe for tenants to move into.
The inspector will look at things like how you plan to heat the property, will make sure it's structurally sound, and ensure you have easy exits in case of a fire.
The good news? The permits are fairly cheap!
3. Set Your Rent
The average rent in Charlotte is about $880 each month. Your number may fall above or below that, so when you ask, "How much should I charge for my property?" look at a few things:
- The expenses associated with running/renovating the property
- The minimum profit you need to make each month
- The location
- Other rents in your area
- The history, architecture, and age of the home/apartment
4. "How Can I Find Good Tenants?"
Thanks to technological advancements, it's easier to screen potential tenants than ever before.
If you've found a tenant you like by advertising online or in a paper, always run a background check on them.
If you're working with a property manager, they will likely be able to help you draw up an application, contract, and lease that will keep everyone protected.
We've Answered Your Question, "How Can I Rent Out My Property?"
There are so many great neighborhoods in Charlotte. Foxcroft, Plaza Midwood, Myers Park, The Fourth Ward...the list goes on!
No matter where your home is located, you can turn what was once just "my property" into an incredible, income-producing rental homes.
Looking for more real estate news, trends, and ideas in Charlotte? We can help you navigate, sell, rent, and buy in the Queen City. Get in touch with us with any questions.