By Guest Contributor, Patrick Young
When looking to move to a new home, some owners decide to use their current property as a long-term rental. Instead of selling to make instant cash, renting your home can be a lucrative strategy for earning passive income each month. Depending on your locale and house size, some homeowners/landlords can make between $1,500-$3,000/month. Over time, this can prove to be an excellent investment.
If you’re considering making a passive income with your property, explore these expert tips from Strong Bros Properties LLC.
Research what it takes to be a landlord
Being a landlord is a job in itself. In most cases, landlords are responsible for all repairs, pest control, and the cost of some utilities. Vetting tenants, move-out cleaning, and lawn care also fall on the shoulders of the homeowner.
Since being a landlord is a significant commitment, research the duties involved prior to renting out your home. If you decide that this isn’t the right job for you, there are other options. Many property owners decide to hire a property management group to take care of all of the time consuming tasks that are typically handled by landlords.
Make all needed repairs and upgrades
Although it seems obvious, handle all repairs and critical upgrades before listing your rental property. People will be far more likely to sign a lease with you when the home is in wonderful condition. Get started by writing a list of all repairs and upgrades you’d like to make in each room.
Set up your rental business as an LLC
Whether you plan to invest in other rental properties or just lease this home, forming an LLC is a wise move. Starting an LLC rental business gives you extra flexibility and the ability to protect your personal assets. When searching for how to register for an LLC in California, be sure to review all state-specific regulations. From there, decide whether you’ll take the DIY approach to forming your LLC or if you will use an affordable formation service.
List and promote your property
After taking all of the above steps, it is time to list and promote your property. Work with an experienced realtor to find renters as quickly as possible. Research real estate companies in your area to find the best fit.
Generating passive income from a long-term rental is a favorite strategy among real estate investors. Instead of trading hours for every dollar you earn, you can secure monthly income for decades to come.
Strong Bros Properties LLC puts people first and profits second. In addition to revitalizing and selling homes, we educate individuals on how to earn a passive income by investing in real estate. Begin charting your path to financial freedom today.