Becoming a Landlord? What to Know

Preparing your home for rent
can be a full-time job.

Spring and early summer is the time to get your home ready to sell; but if you can’t sell, and yet you have to move, you may be in the difficult scenario in which you are forced to become a landlord. If you are in this position, you are not alone. The Equifax Finance Blog gives some great tips this month on getting your home ready to rent out in the recent article, “Preparing to Rent Your Home.”

Get insurance coverage – Switch your homeowner’s insurance to landlord’s insurance to protect you from damage and protect against financial loss.

Prepare your home – Get the property in tip-top shape to beat out your competition; be sure all major systems (like heating, roofing, electrical, etc.) are in proper working condition and document the condition of each area of your home before a tenant moves in.

Know the tax rules - Learn how about being a landlord will impact your taxes; you will receive write-offs on the property, but will also have to count the rent as income; so know the rules. Consult a tax professional for full details.

Have the cash – Prepare for months without tenants, emergency repairs, regular maintenance and more. Remember that rental prices are sent by size, condition and location and not your expenses as the property owner. In many areas, it is not uncommon for expenses to outweigh rental prices, so you may have to take a rental prices that is lower than your expenses, and take a loss each month, and you will need the cash to make up the difference.

Get more helpful information in the full article on the Equifax blog and find more tips on real estate, financial management, identity theft solutions, retirement, identity theft protection and more.