Whether you are self-performing or utilizing a GC will also influence the contract management process, but a few guiding principles include:1.

Current Setup (Owner-Occupied + Rooms Rented)The house is their primary residence → they keep the Section 121 exclusion if they sell (up to $250K each, $500K if married) as long as they’ve lived there 2 of the last 5 years.The rented bedrooms = rental portion → they can deduct:A share of mortgage interest & property taxesA share of utilities, insurance, repairsDepreciation on the rented portion of the homeThe share is usually based on square footage (e.g., if 2 of 5 bedrooms = 40%, then 40% of those expenses are rental deductions).2.

Just have to give the utilities a few days (they like a week) notice to come out to do final meter readings. 

@Bobbie Russell  add a utility cap to the furnished lease.

Ask about CAM (common area maintenance), utilities, build-out costs, and annual increases.Review Key Lease Clauses:Assignment/subletting rights, renewal options, recapture clauses, and repair responsibilities — these matter as much as rent.Check Landlord Incentives:Vacancy is up in many markets, which means landlords may offer free rent, TI (tenant improvement) allowances, or more flexible terms.Line Up Your TeamHave your broker, attorney, and lender (if financing improvements) involved early.

Also here in Pennsylvania, there is a state law that common area electric like exterior, halls, and basements must have its own meter not on any tenants bills. 

The tradeoff is time—permits, site prep, utilities, and inspections can stretch a project well past the 12–18 months mark, compared to a 3–6 month rehab.

Reactive Problem-SolvingOperators know problems are inevitable — so they design response systems in advance.Maintenance Matrix: Document common issues (WiFi reset, HVAC troubleshooting, breaker panel locations) with photo guides stored in a digital binder accessible to staff/guests.On-Call Vendors: Build a bench of reliable local contractors (plumber, electrician, cleaner, handyman) with pre-negotiated response times.Tech Monitoring: Use smart sensors for noise, water leaks, and thermostats to prevent issues before they spiral.Communication SOPs: Response time targets (under 5 minutes for urgent issues, under 30 minutes for minor concerns).System: Crisis Playbook Binder — a digital + physical binder with scripts, vendor contacts, and SOPs for every common guest problem.6.

The seller needs moving money, there are oftentimes an arrears that has to be paid on the loan, there are oftentimes HOA fees that are due, there are title costs, there are escrow costs, usually there is deferred maintenance, you have to make mortgage payments out of pocket until you get a renter in there, you have to pay utilities and taxes, and you need reserves in case it all doesn't go as planned.3.

It's common to feel overwhelmed by mortgage terms, down payments, and housing market fluctuations.