House and Dollar Signs ImageWould you like to make money in real estate? Have you ever considered renting out an additional home? This is a great way to start creating additional income without working for every penny. However, before you find your first renter, you must first prepare the house for new residents.

Before you start interviewing potential tenants, the property must be completely safe. To verify the house is ready to move in, you must have it inspected. The inspection report will tell you of any existing problems and any that are likely to cost you money soon.

Figure Out Average Monthly Bills

In order for a rental home to be profitable, the rent needs to cover the monthly payment. However, in some cases, such as with older homes, the monthly payment may already be low. In these situations, it might be possible for the rent to cover the mortgage and the monthly utilities.

If this is the case, then you can advertise the house for rent with “utilities included.” This will immediately garner more attention from potential renters over other properties. Of course, you should research how much the average utility bill is in the neighborhood during this process. Only after you’ve researched the average use amount will you be able to set the rent.

Protect Yourself with Insurance

Each month, you will also be required to pay the homeowners insurance. Find out how much this premium is going to be so you know what your expenses are. If you can save money by paying insurance premiums every quarter instead of every month, then perhaps this is an option to consider.

When you have renters living in your home, it’s even more important to protect yourself with an insurance policy. There are plenty of potential accidents that can occur and without this coverage, you could find yourself with a deep financial loss. Keep in mind that multiple policy holders receive discounts on all their home coverage plans, so you’ll save money right away.

Advertise Local Amenities

Another part of getting your home ready to rent is checking into local amenities. Marketing information like this will help you advertise your house for rent. Point out the local restaurants, schools and shopping resources. Talk to potential buyers about the commute times to downtown and how quiet the local neighborhood is. All of these are details that families and working professionals will be interested in.

Getting a home ready to rent is putting money in your own pocket. The more time you spend on details, the more attractive the location will be. Think about what would be important to you as a resident and then share that future renters. This is the most efficient way to start making money with a rental home.

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This is filed under Home Buying.

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