Converting Primary Residence to Rental Property
My wife and I bought a single family primary residence two years ago and are finally ready to convert it to a rental property. Besides the basics of a lease and collecting rent, what do I need to be aware of? Are there licenses and permits I need to obtain? What’s the best way to structure for taxes and how should I collect rent?
In Philadelphia, PA
Hi Jason,
You will need
- Commercial Activity License / BIRT
- Complete a lead safety inspection and upload once results are in and satisfactory
-U&O
- Up to date deed with your name (I assume your deed shows your name on the property already as it was your primary)
- Make sure there are no open violations on atlas
-Then you will have to have them review and you should have them sign all the paperwork like ‘Partners for good housing’ (there is a new version for 2022)/lead saftey/etc.
Happy to talk in more details and more information below:
https://www.phila.gov/services...
And older but great post:
https://www.biggerpockets.com/...
Quote from @Jason Clough:
This is a good resource to get started: https://www.nolo.com/legal-enc...
Do yourself a favor: buy "Every Landlord's Legal Guide" by NOLO, the makers of the website above. Written by attorney investors, it's full of practical advice pertaining to management of investment property, has sample forms that can be edited, and - most importantly - they tell you what your primary state laws are and where you can read them. It's updated every year and is the best $40 you'll spend as a Landlord. There is one book for 49 states and a separate book for California.
There's a lot to learn and you should start immediately. Selecting the right tenant is one of the biggest, most important skills to learn so figure out how to do it right now.
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
That tenants are a pain to deal with, treat it like a business. Don't get closer than you ned to be, make sure you take your time and get the right tenant in there. Will save you the 2am calls. Depending on if you're in a HOA you may not be allowed to have a rental.
Hello!
Could someone recommend an engineer or a company that does cost/bonus segregation on a single family home in Center City Philadelphia? I am a free-lancing musician and a newbie in RE investment. I am almost done with the repairs of my former home that I plan to rent out to supplement my income, and would like to get the cost seg. report done before the end of 2022 if possible! Thank you and happy holidays to everyone!! -Sabrina
Quote from @S Hsu:
Hello!
Could someone recommend an engineer
You may want to start a new topic to get input on this. My understanding is your unit has to be completed by the end of the year to utilize a cost segregation for the year 2022 (which will be beneficial due to the laws starting in 2023) rather than having the cost segregation completed by the end of the year.