Converting a primary residence into a rental.

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Converting a primary residence into a rental.

John Reel
Franklin, IN · Member since 2017 · 11 posts · 1 vote

I am in the process of converting my primary residence into a rental property. I already have tenants in place. I need to know what the next step is as far as legal contracts/policies, steps to converting a primary residence into a rental (insurance/mortgage/property taxes).

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Dave FosterBusiness Member
Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
8y

@John Reel, You'll let the IRS know with your next tax filing.  Your cpa will set up depreciation schedules and establish an initial basis for that property.  And it will be reported on your Schedule E on your next return.  

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  • Melvin ListBusiness Member
    Lender · Tampa, FL · Member since 2016 · 1k+ posts · 381 votes
    8y

    @john Reel as far as the mortgage company you will just need to notify them of your new address. 

    C2 Financial
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  • Dan Vleck
    Deerwood, MN · Member since 2014 · 184 posts · 122 votes
    8y

    I suggest reading books on being a landlord to help you prepare for issues that will come up.  Your lease is your contract/policies.  I hope you have a lease for your tenants...

    Talk to your insurance agent about this because there is different insurance for rental property.  I suggest talking to an insurance broker.

    The local taxing authority should be informed that the house is no longer your homestead, if that is a property tax status where the house is. 

    Good luck.

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  • John Reel
    OP
    Franklin, IN · Member since 2017 · 11 posts · 1 vote
    8y

    Thanks for the reply, very helpful.

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  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    8y

    @John Reel, You'll let the IRS know with your next tax filing.  Your cpa will set up depreciation schedules and establish an initial basis for that property.  And it will be reported on your Schedule E on your next return.  

    The 1031 Investor5137 Reviews
    WebsiteView Page
    1Reply
  • John Reel
    OP
    Franklin, IN · Member since 2017 · 11 posts · 1 vote
    8y

    Thanks Dave, very helpful. 

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  • Claudia Beals
    Chicago, IL · Member since 2018 · 2 posts · 1 vote
    7y

    Hello,

    I know this thread is old, but I do have a question? Is it a good idea to put your primary home that is now a rental property into a LLC? I live in Illinois

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