Turn your residence into a rental.

[Melanie Baldridge]

Want to turn your primary residence into a rental property?

Here’s how in 6 easy steps:

1. Check local regulations.

First, verify that your local zoning laws, HOA rules, or condo bylaws permit renting your property.

2. Update your insurance.

If they do, inform your insurance company about the change in your property's use. You will have to switch from a homeowner’s insurance policy to a landlord insurance policy which covers rental specific risks.

3. Let your lender know.

Notify your mortgage lender about the change if required by your loan agreement.

4. Get a cost seg study done.

Once you convert your primary residence into a rental, you can get a new cost seg study done and take bonus depreciation to offset the new rental income.

5. Market your property and get tenants.

This could be through flyers, direct mail, rental marketplaces, newspaper ads, or on social media etc.

6. Hire a property manager.

If you choose to self-manage, be prepared to handle tenant comms, maintenance requests, and rent collection.

Otherwise you can hire a property manager to do all of that for you. Reminder to always keep a record of all rental income and expenses for tax purposes.

And that’s pretty much it.