Congratulations, You’ve Decided to Turn Your Primary Residence into a Rental! 15 Things You Can Do to Set Yourself Up for Success

By Jen Sperling, J.D.

Guest blogger, real estate investor, and attorney Jen Sperling has turned two of her previous homes into successful rental properties.  Here are 15 things you might not think of doing before you move out.  Want more insights from Jen? Listen to Real Life Planning Podcast Episode 76: Turning Your Home Into a Rental Property.

What you will get from this article:

#1 - Make sure you can get a rental license and familiarize yourself with local laws pertaining to your rental strategy.

#2 - Interview and hire a property manager or set up your systems for self-management, including tenant screening, rent collection, and maintenance calls. There are many platforms that help DIY landlords do these tasks, like Rentredi and Avail.

Adjust your insurance coverage before the tenant moves in

#3 - Adjust your insurance coverage to a landlord policy and make sure you have adequate coverage for the type of rental it is (short term, long term, furnished, etc.).

Catch up on maintenance and repairs

#4 - Do preventative maintenance – yes, all those things you’ve probably been putting off like servicing the HVAC, getting the roof checked, cleaning the gutters, test smoke and CO detectors.

#5 - Put your intimate knowledge of the property to use, head to the hardware store, and fix those tiny things that you’ve been living with as a minor annoyance as a homeowner (but will be doubly annoying to a tenant). Think squeaky hinges, loose doorknobs, a washing machine that needs a shim to stop it wobbling, drafty door frames. Pay special attention to safety issues like wobbly stair rails or window locks.

#6 - Write down key information about the property such as the make/model of appliances (if you have manuals, scan a copy), last date of service of appliances, HVAC filter size, trash/recycling days and any special instructions, parking restrictions, emergency contacts (property manager, plumber, electrician, HOA).

#7 - Consider a fresh coat of paint in a durable, neutral color (or decide if you will allow your tenants to paint, in the lease)

#8 - Rekey locks or replace with Smart locks.

#9 - Create a lease package (or review the lease your property manager has prepared).

Deep clean your property from top to bottom

#10 - Determine which utilities, if any, will stay in your name.

#11 - Deep clean.

#12 - Take photos/videos that document the condition of the unit before the tenant moves in (a property manager may also provide this service). It is advisable to hire a professional real estate photographer if you are using the photos for marketing.  

#13 - Forward your mail and change your address on important bills.

#14 - If leaving furnished or leaving personal storage behind, double-check that you haven’t left anything valuable or sentimental that would be upsetting if it were to break or go missing.

#15 - Start thinking about your long-term strategy 

Will you hold, sell in 1-2 years, sell in 5-10 years and 1031 exchange? Make a long-term maintenance plan that fits your strategy and work with a tax professional as needed to understand depreciation and other available write-offs.

If you’re looking for an experienced and dedicated real estate financial planner and want to see if Real Life Planning is the right fit for you, we’d love to have you book a discovery call with our team.

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