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).
@john Reel as far as the mortgage company you will just need to notify them of your new address.
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.
Thanks for the reply, very helpful.
@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.
Thanks Dave, very helpful.
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