If you are lucky enough to own multiple properties, you may have thought about diving into the rental market to earn some extra cash, or perhaps begin flipping homes as a side business or your career. Renting your house out is a great way to make some extra money without having to do a ton of leg work throughout the entirety of the process. However, there is a lot that you must know and consider regarding the rental market before beginning to advertise your home. If you’re looking to rent your house out this summer, or next summer, and want to be prepared, check out the following tips:
- Know any limits in your area. Check within your town and area to see if there are any limits as to how often that you can rent out your house. Once you are aware of the limits, be sure to update your neighbors so they are in the know when they see new tenants in their neighborhood.
- Meet with your accountant. What many renters may not realize is that after a certain amount of time you are required to report your income from renting during tax season. It is good to get ahead of the game and meet with your accountant, so you are prepared for this.
- Look into advertising costs. Check your budget and look into different ways that you can advertise renting your home. If you are in a great tourist area, you may not even need to dip into advertisements. There are many different options when it comes to advertising, whether it is on a real estate website, social media or Airbnb. Figure out what works best for you based on your budget and amount of time that you have.
- Check out other rentals for comparison. Look into other rentals on the market that can be compared to your home to see what they are listed for, so you are ensuring that you are putting your home on the market for a fair price, while still profiting!