Want to Rent Out Your Home, to Pay for It? Here's What you Need to Know as a Landlord

If you've ever thought about turning your property into a source of passive income, it may not be a crazy idea for you. Nowadays, it's common to consider renting out a house to cover a mortgage and tax payments. We want to give you a few things to consider, to introduce you to the possibility of renting out your property by identifying the key elements of this investment idea.

Financial Responsibilities

We first need to understand the financial responsibilities we get when we own a house, beyond the initial purchase price. “How to figure out if you actually have enough money to buy your first home” (CNBS, 2024) mentions possible additional payments you have to take into account from the moment you become an owner like mortgage, insurance, closing costs/fees, and taxes. Renting out your house presents an opportunity to offset these expenses, but it's crucial to have a clear understanding of these financial obligations.

Additionally, something that can help you better cover your financial obligations is knowing the rental potential of your property. Factors such as location, amenities, and market demand will determine how much rent you can charge. You can research this, or ask your local property management company about similar properties in your area to get an idea of current rental rates. Depending on condition, age, and functionality, you could consider investing in certain upgrades or improvements to your property to maximize your rental income and earn more from your property; the more you earn, the better you can cover all of those financial responsibilities.

Legal Requirements

Now, becoming a landlord requires some legal obligations to obtain permits or licenses, comply with zoning regulations, and adhere to landlord-tenant laws. It's crucial to familiarize yourself with these requirements to avoid legal issues down the road.

Although there are specific laws for landlords and tenants in different states, here are some of the general laws that should be taken into account in Georgia: the Discrimination and the Fair Housing Act Laws, Lease Document Laws, Required Disclosures and Notices Laws, and of course the Georgia Landlord Tenant laws.

Tenants

Finding good tenants is an important aspect to maximizing your income. Part of being a good landlord is finding a qualified tenant to put into your home. Utilizing a professional property management company with experience in screening applicants, and who can manage your property using best practices, will help give you the peace of mind that your home is in good hands. By making a good tenant, a happy tenant, you increase the possibility of a long-term tenant.

These are some tips for landlords to have the best experience with tenants:

Run your rental like a business.
Always conduct an inspection prior to move in, and upon move out.
Be firm on late fees and other lease agreement rules.
Hire professionals like handymen, electricians, and plumbers for maintenance.
Make expectations with the tenant clear, and keep open communication.

If you’re interested in the prospect of renting your home, but don’t want to deal with the hassle of dealing with tenants, consider a professional property management company like Vision Realty & Management. Hiring a professional will offer you the peace of mind and security that the company will be in charge of managing the communications with the tenants, and will take care of any requests for things such as maintenance of the property.

Conclusion

Using your rental property to pay the mortgage and taxes can be a smart financial tactic, but it requires certain elements to consider before and during its development. Some of these are clarifying financial responsibilities, understanding legal obligations, conducting an analysis of the real estate market, and finding qualified tenants to fill a vacancy.

Being a well-educated landlord can help your house become a great investment. If you are considering this path, and are interested in alleviating the stresses of self managing, we would be happy to help you. Contact Vision Realty & Management today, by clicking here, to learn how we can help set you up for success in the world of property management.

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