Investing in a real estate property is one of the best financial decisions you can ever make today. Not only does it give you a home; it also gives you a lucrative source of income in times of need.
In this article, I will share with you some tips for turning your high rise into a vacation rental and making your property actually work for you.
Planning to Rent Out Your Property
While turning a condo into a rental property is now a lot easier than ever, remember that renting out your home is a major undertaking and takes careful preparation and planning to be successful.
Here are some of the things you need to consider before renting out your high-rise condo in Las Vegas:
- Determine whether or not your condo is suitable for vacation rental
Is your condo located in a desirable location? Is it near popular attractions in your city? Does it have amenities or special features that will make it a magnet for people who are looking for a home to rent?
If your answer to these questions is NO, then that means your condo might not be rentable after all.
- Ensure that you can legally rent out your condo
Turning your condo into a vacation rental means business, and it has to be a legal business. If you don’t want to be involved in anything illegal, check out the levels of laws and restrictions that are regulating rental homes in your area and make sure that you abide by them to avoid paying expensive fines in the future.
- Begin with a web search for rental regulations in your city. You may also call your city’s main office to track this information down.
- Carefully read your mortgage agreement to make sure that you are actually allowed to rent out your home.
- Learn about your homeowners’ association’s restrictions on renting and subletting.
- Decide if you are renting out your property on a short-term or long-term basis
- Decide if you’re renting out your entire home, or just a room or two
While it is more common to rent out an entire property, you also have the option of renting out only a portion of your home. That option may be challenging as you will have to engage well with strangers and often deal with the hassle of people entering and leaving your home at odd hours.
If you’re up to the challenge, why not?
Preparing Your Home for Rent
After you have already planned how you are renting out your property, the next thing to do is to get your home ready to rent. Remember, deciding to rent out your high-rise condo isn’t just about moving out and finding someone else to occupy and pay for your space.
As you decide to rent out your home, prepare to do some legwork and deal with papers!
- Keep detailed records of your expenses
Although rental income is taxable, some of the expenses you will incur during the preparation stage are tax deductible. If you want to maximize your deductions at tax time, keep all your records!
- Secure a rental permit
Not all areas require a rental permit, but if it is required in your area, make it a point to apply for one before your first guests arrive.
- Get a landlord insurance
Once you have already decided on the kind of rental situation you are going to have, let your insurance agent know about your plan and ask if your current homeowner’s policy covers that kind of situation.
Most of the time, policies only cover occasional short-term rental. If you’re planning long-term arrangements, you might be needing special coverage.
- Prepare your home for your first guests
Is your home livable? Do all your appliances work? Is everything clean and neat? Are your smoke detectors and fire extinguishers in good working condition and clearly accessible?
As you prepare your home to rent, consider if your guests will find it comfortable living in it. Make sure that you decorate it well, everything is clean and that all your items and furniture are of decent quality.
- Seek help from a trusty cleaning service
While you have the option of doing all the cleaning to minimize costs, that may be time-consuming and tedious for you. If you have the budget, hire a reputable cleaning company to do the job.
- Hire someone to take care of your lawn
Just like cleaning, landscaping can be tough especially when you’re in for a long-term rental situation. If you can afford it, hire a licensed and reputable landscaping service provider to take charge of the maintenance of your lawn.
And oh, remember that all these cleaning and maintenance costs are tax deductible!
- Prepare a welcome packet for your guests
Especially if your guests are new to your area, an information packet will help them adjust to their new home. This packet must include information about your rental policies and information on local attractions and dining options in your area.
Finding Renters for Your Property
Now that your home is all set to welcome your first guests, it’s time to start finding renters for your high-rise condo!
- Hire a professional photographer to take quality photos of your property
You can’t underestimate the value of quality photos in attracting potential tenants for your home. If you want to rent out your high-rise condo fast, look for a real estate photographer who can accentuate the special amenities and your home.
- Make a concise and engaging description of your property online
Nowadays, people largely depend on the web when looking for a home to buy or rent. Make your property stand out by listing your property and highlighting its special features!
- Draft a rental agreement that protects both parties
If you can’t draft a contract from scratch, you may at least look for a rental agreement template online and use it as a starting place. When renting a property, tenants want everything to be as clear as possible, so having a document like this set in place will work to your advantage.
Make sure that your contract stipulates how much rent your tenant will have to pay each month, the duration of the stay, as well as rules you have for your property.
- Carefully screen your guests
You are renting out your property and you are basically dealing with strangers. Imagine how risky it would be for you if you don’t screen your new guests!
To alleviate your fears and doubts, make sure that you speak to your potential renter before accepting the booking. It also helps to ask for personal reference and check them out on social media to make sure that you are dealing with legitimate people.
Turning your high-rise condo into a vacation rental home does not guarantee that you will get rich quick, but with proper planning and execution, this can give you a reliable and steady source of cash flow!