You can easily rent out rooms while still occupying it.
I would carefully read your mortgage language if planning to move out to rent. Most loans are structured with the underwriters risk assessment based upon it being used solely as your personal residence.
It sounds like you're essentially trying to "pre-list" it as a whole house rental though? If that is the case I would definitely consult your CPA about when to do repairs etc if you are thinking of tax advantages. What is your long term exit strategy? The date you convert it will affect basis value and taxes if you ever sell.
Talk to your insurance agent first. Insurance for a rental will likely increase.
I would also check into legal ramifications if you list it for rent but can't actually move on the agreed date.
Check local zoning ordinances for restrictions on rentals. Some only allow them in specific areas.
Get a handle on your neighbors attitude about living next to a rental. Some can turn into a nightmare when they realize they're not living next to a homeowner.
You most definitely can turn your residential property into a rental but you must make sure your following the correct guidelines and regulations for your location.
You will have to ensure you keep your expenses in order since you can not claim the expenses pertaining to the unit you will occupy as business expense. Only the units being rented out can have their respective expenses claimed for your taxes.
I would highly suggest speaking with your CPA before finalizing your decisions to find the best option for you.
Rental Property Investor · Salt Lake City, UT · Member since 2020 · 8 posts · 2 votes
5y
@Steve Pickenpaugh
That is very helpful thank you!
We bought the house 2 years ago as a “fixer upper”. We fixed it up and had planned to sell. Learning more and planning we now would like to keep the asset but live else where.