Moving always comes with questions that need to be answered. The hassle of going through the process of selling your home can make you wonder if it’s really worth it. If you have run the numbers and have been toying with the idea of turning your home into a rental property when you move, there are some considerations you need to take into account.
Check Your Mortgage Terms
Some mortgages require that you live in the home for a set amount of time; FHA and VA loans are an example. If you haven’t lived in your home as long as your terms require, you cannot transition your home to a rental and move out.
Check With Your HOA
If your home is located within an HOA, you will need to check the bylaws before making the plunge to turn your home into a rental. Some HOA’s only allow a set number of homes in the neighborhood to be designated as rentals, while others forbid renting entirely.
Consult With Professionals During the Transition
To turn your home into a rental you will need to ensure that you are following local laws. Ensure that your property is habitable and safe for renters, change your insurance to landlord insurance and finally, check with a lawyer to ensure that you are creating a sound lease agreement for your new rental. If your budget allows, it can be helpful to hire a property management team to take care of the day-to-day. Professional expertise can help you ensure that your home is legally rent-ready.
Transitioning your home into a rental can be an easy way to gain passive income and avoid the hassle of selling your current home while looking for a new one. Just be sure you’ve checked all the boxes and done your research before making the leap.