If you’re moving or traveling and want to transition your primary home into a rental property, there are a few key steps you need to take.
Having an income property is great. Still, in order to reduce your liability and create a sustainable investment, you have to check off all the necessary steps to turn your house into a rental property.
Here are a few steps you can begin to take to ensure your home will be ready for renters and is legal for you to rent out!
Step One: Bring the House up to Code
Your future tenants have the right to a safe place to live. As such, your house has to be up to the housing code in your state or district. Each state has different laws about what it means for a home to be up to code, but a few elements you can start with are:
- Install smoke detectors. You need to have smoke detectors on each landing and in each bedroom.
- Ensure adequate heating, cooling, and ventilation. This can affect the health and safety of both your renters and your house.
- Install carbon monoxide detectors. Carbon monoxide gas is a silent killer. You should have detectors installed near any equipment that could release harmful gases.
These are just a few of the many requirements your state may have in regards to a rental property being up to code according to housing laws!
Step Two: Obtain the Necessary License and Inspections
As much as you might like to, you can’t just begin renting out your property, even if it’s to a friend or family member.
You must obtain a Basic Business License (BBL) to rent out any type of property or unit. You must also file your unit as under rent control or exempt from rent control. If your property is under rent control, any increase in rent is illegal.
If you’re transitioning your home into a rental property in DC, both the outside and inside of your home must pass inspection in order for it to be a rental property.
Step Three: Decide If You Want to Be a Landlord
You’ll also need to decide if you’ll be the one handling all the property management tasks of your new rental home. Being a landlord is a big responsibility that requires upkeep of the property through maintenance, collecting rent, addressing tenant concerns, conducting inspections, and much more.
Part of transitioning your home into a rental property will also mean you need to set rules and draft a lease that’s upholdable in a court of law in your state or district. For leasing requirements, you must know the laws in your area in order to prevent liability.
You also need to figure out how much to charge for the monthly rent. The best way to do this is to consult with a professional such as an experienced property manager or even a real estate agent to learn the best market value for your home.
Get Your Unit on the Market With Us!
Transitioning your primary home into a rental unit isn’t easy, but our team at FAS Management knows what it takes to get a unit on the market. We know what items to check and correct prior to inspection, and we assist with all necessary paperwork, including your lease and tenant applications.
Are you considering turning your home into a rental property? Contact us at FAS Management today at (202) 337-5080. We have the industry expertise and in-depth knowledge you need to quickly and safety get your home ready to rent!