Renting out your home can be a great way to generate extra income while gaining access to new experiences and perspectives. It’s important, however, to research the process thoroughly before taking any action. You need to take steps to ensure success and potential legal ramifications that should be addressed.
You will need to inform your lender
It’s important to inform your lender if you’re planning on renting out your home, even if it’s just a room in your house, as it may affect the terms of your loan.
If allowed by the loan agreement, make sure all parties sign the appropriate paperwork recognizing who is responsible for the house and other relevant information needed for renting. If you’re not occupying the home full-time, provide your lender with your updated contact information.
Taking these steps in advance will help provide security and protection for everyone involved.
Consult your lawyer
Before you rent out your home, make sure you’re doing it safely and legally by consulting with an experienced lawyer familiar with landlord-tenant laws. Doing so will help ensure that all the necessary documentation is completed correctly and that your rights as a landlord are protected.
Furthermore, talking to a lawyer beforehand can prepare you for any problems that may arise during the rental process so that those issues may be resolved quickly and seamlessly.
Understand the responsibilities of becoming a landlord
There are many fees and expenses associated with being a landlord:
- Mortgage payments
- Lender fees
- Emergency repairs
- Landlord insurance
There will also be tax implications, as rental income will be added to your taxes to determine the rate you will pay.
Contact the experts at Merchant of Homes about rental property
If you’re keen on renting out a property, consider purchasing a property for that purpose. At Merchant of Homes, our expert local agents are here to help you find the best investment property for your needs.