If you’re mulling over possible ways to initiate a passive income stream, consider whether you could rent your home out for vacationers or other travelers. This could entail a major overhaul, like transitioning the entire residence over into a vacation rental. Or, you might simply want to rent out sections of your home, such as a private room or a whole floor, from time to time. Another possibility might be to buy a vacation home and rent it out when you are not using it. Whatever your vision for your home as a rental facility, here are some helpful tips from the Investor Riches blog to get you off to a good start.
Make sure the investment will be worth it.
A lot more goes into renting out property than you might imagine. After the initial costs of preparing your home for potential vacationers, you also may be paying for property managers and cleaners. There will also be the usual costs of upkeep and repair, as well as any fees for listing your home on rental sites. Of course, don’t forget mortgage payments and utilities.
Make sure to get to know the local market before you buy investment property. Research similar properties in your area to see what you can reasonably charge per week, night, or month. Then sit down and weigh out the costs alongside the income to see whether you have a sufficient ROI (return on investment) to make it worth your while, and if you think going with online pokies is the best move then go with it.
Decide on your target demographic.
Who will be renting out your home? Business travelers or vacationers? Families, college students, or retirees? Determining the likely demographic of your renters will help you make certain decisions on how to advertise your home and how to decorate and showcase it to make it most appealing.
Bear in mind that some renters may be harder on the property than others or even difficult to deal with. Decide whether you want to market your home as pet-friendly or specify that no pets are allowed. Also, consider questions about safety, especially if you are thinking of renting to families who might have small children.
Make your home as attractive as possible.
Just because you are happy with the appearance and décor of your home doesn’t mean vacationing guests will be. That saggy chair with the familiar stains on it may be comfortable for you, but its appearance will be off-putting to guests. Your décor and furnishings should be crisp, clean, and new.
Consider doing a deep cleaning of your home, especially of carpets and upholstery. Deal with tough stains on otherwise attractive furniture by hiring affordable upholstery cleaners. You can locate one by Googling couch cleaning near me. Read reviews and compare estimates from different providers. As a rule, a reputable service will have dedicated tools for different furniture pieces, so anyone who claims they can do the job with just a portable steamer is likely more trouble than they’re worth.
When it comes to décor, choose a particular aesthetic that suits the home or its environment, and build around that, with a preference for minimalism over clutter. Also, avoid décor that is overly quirky or could potentially be in poor taste. Some affordable upgrades that immediately make your home more appealing include updated cabinet handles and faucets, fashionable lighting fixtures, and a fresh coat of paint.
Educate yourself on how to run a rental well.
If you want this to be a success, having an appealing and comfortable rental is just the start. Renters will also expect good customer service as well. As a starting point, make sure the actual rental matches what was described or depicted in ads. You don’t want renters showing up and immediately being disappointed or frustrated.
Provide your renters with extra perks such as simple guest baskets or making sure the cabinets are stocked with games and DVDs. The appliances and electronics should all work well and wi-fi should be easy to access. You or your property manager should always be easy to contact if renters have any questions or problems.
Renting out your home is not a choice that is ideal for everyone, but if you feel it is right for you, it can be a great source of ongoing passive income, as well as an opportunity to connect with different people. Just a few basic strategies can make all the difference in your pursuit of success in this field. If you feel you need more information on real estate investing prior to making this move, visit the rest of the Investor Riches site and take advantage of our programs and training.
Good luck to you on this new endeavor. I’d love to hear about your successes.
Expect abundance,
Lou Castillo
