When it comes time to move, many homeowners consider selling their current property to help fund their new purchase. But there’s another option to consider: turning your current home into a rental property. Not only can this provide a steady source of income, but it also allows you to keep your property and potentially sell it for a higher price in the future. Here are some tips for turning your current home into a rental property.

1. Consider the rental market in your area

Before deciding to turn your home into a rental property, it’s important to do some research on the rental market in your area. Look at what other similar properties are renting for, as well as the vacancy rates in your neighborhood. This information will help you determine if renting out your home is a financially viable option. Greater Indianapolis has a very strong rental market, and often, the rent you could collect will be higher than your mortgage, allowing you to cash flow.

2. Determine your monthly rental price

Once you have an idea of the rental market in your area, you can start to determine the monthly rental price for your home. This price should take into account any mortgage payments, property taxes, insurance, and maintenance costs. It’s also a good idea to factor in a cushion for unexpected repairs or vacancies.

3. Get your home rental-ready

Before you can start renting out your home, you’ll need to make sure it’s in good condition and up to code. This may involve making some repairs or upgrades, such as fixing leaks, replacing outdated appliances, or updating the HVAC system. You’ll also need to ensure that your home is compliant with any local rental regulations, such as obtaining the necessary permits and inspections.

4. Market your rental property

Once your home is rental-ready, it’s time to start marketing it to potential tenants. You can list your property on rental websites, such as Zillow or Apartments.com, as well as advertise on social media or through local real estate agents. Make sure to include high-quality photos and detailed descriptions of your home’s features and amenities.

5. Set clear expectations for tenants

When renting out your home, it’s important to set clear expectations for your tenants. This includes outlining the lease terms, such as the rent amount, due date, and length of the lease, as well as any rules or restrictions regarding pets, smoking, or noise. You should also provide your tenants with a way to contact you in case of emergencies or repairs.

Turning your current home into a rental property can be a smart financial decision, but it requires careful planning and preparation. By considering the rental market in your area, getting your home rental-ready, marketing your property effectively, and setting clear expectations for your tenants, you can successfully rent out your home and enjoy the benefits of a steady source of rental income. Our team of realtors specializes in running rent analyses and has experience leasing and managing rentals. Request a free rent analysis today to see what your home could rent for it you were to hold onto it versus selling it during your next move.