How to Rent Your House for Passive Income

How to Rent Your House for Passive Income

Real estate has long been one of the best ways to invest and grow your wealth. Investment properties can be an excellent strategy for passive income, but require the right knowledge and strategy to pay off.

Here are some things to keep in mind if you are preparing to rent your house.

Benefits of Renting Your House

Many people have successfully built multiple streams of passive income by slowly purchasing more homes and renting them out. This can be a stable and lucrative retirement strategy, or simply a way to build more financial stability and freedom.

By investing in a property, even if you mortgage it significantly, the value of the investment will increase over time while your expenses remain just about the same. For example, your $1800 mortgage will still be $1800 in ten years, when the rent for the property will likely have increased by hundreds of dollars each month. By renting the house, you are allowing the tenants to pay your mortgage while your asset grows. When the system works well, with a great tenant and healthy real estate market, this is a no-brainer investment strategy.

Can You Afford It?

First and foremost, make sure that you can afford to rent the house. Of course, you intend to make money from it, but there are cases in which your tenants might cause more damage than their deposit will cover or not pay rent on time. In some cases, some time may elapse between tenants in which you will be responsible for paying the mortgage on that property. Landlords are also responsible to keep the property in livable condition, repairing and replacing parts of the home in a timely manner.

Before renting your house, be sure that you are prepared with a sufficient emergency fund to bridge the gap should any of these issues arrive.

Finding Tenants

Once you have decided that becoming a landlord is the right fit for you and you have secured a property that is ready to rent, the next obvious step is finding tenants. Attracting high-quality, reliable tenants is key.

To market your home to the right tenants, begin advertising both online and with physical signs. Post a "for rent" sign on the property or in the neighborhood if it is allowed. Otherwise, list the home with high-quality photos and clear information on multiple websites. The type of listing you create will determine the type of tenants that inquire. Make sure your listing is free from typos and errors and features thorough information.

Don't forget to carefully screen tenants. Before signing a lease, ask for these from applicants:

  • Proof of employment and income
  • Credit score
  • Letter of reference from previous landlords

To save time, make your requirements clear on a pre-screening phone call.

Property Managers

Some landlords opt to hire a property manager to deal with day-to-day tasks. This may be the right choice for you and worth the expense depending on the details of your situation. Some good reasons to hire a property manager include:

  • You are still employed full time and don't have extra time to manage the property
  • You are renting out multiple properties
  • You dislike dealing with customer service issues like asking for payments or fielding complaints
  • You are concerned about addressing conflict with tenants
  • You are concerned about keeping everything organized

Property managers will require different payment depending on the area the home is in and the services they provide, but a general estimate is 50% of the first month's rent and then 10% of the rent moving forward. For many people, this cost is worth the time and stress saved.

To begin looking for the ideal property to rent, or for your next home so you can turn your existing house into an income property, contact us. We would love to help you build your passive income streams.

2591 Properties
Page 1 of 216
$795,000
Neighborhood: Valencia Groves
5
Beds
2
Baths
2,691
Sq.Ft.
2000
Year Built
1
Day on Site
6429070
MLS
No description available...
$375,000
Neighborhood: Alta Vista 3
3
Beds
2
Baths
1,104
Sq.Ft.
1953
Year Built
1
Day on Site
6429072
MLS
Comfortable sized split bedroom home offering easy highway access and close proximity to shopping district. The home offers a perimeter fence front & back with multiple outbuildings for storage....
$189,900
Neighborhood: Rio Rico Villas Unit 12
3
Beds
2
Baths
1,084
Sq.Ft.
1997
Year Built
1
Day on Site
6429068
MLS
Beautiful views in front and rear of the home. This move-in ready home has 3 bedrooms, 2 baths, and a 1 car garage. Recently renovated with newly painted interior and exterior, new roof, water...
$385,000
Neighborhood: Beall Park 2
2
Beds
1
Baths
1,296
Sq.Ft.
1962
Year Built
1
Day on Site
6429075
MLS
Location! Location! Location! This nicely updated home features interior freshly painted, retextured living room walls, new base boards & door frames all completed in 2022. Tile flooring through-out...
Open 7/10
10254 E Blanche Drive Scottsdale, AZ 85255
$845,000
Neighborhood: Hoffman Property
4
Beds
2
Baths
1,837
Sq.Ft.
1999
Year Built
1
Day on Site
6429073
MLS
Beautiful 4-bedroom home in a cul-de-sac at popular McDowell Mountain Ranch. Great location Home had got many upgrades in the last year. Home is nicely updated with new floors, new granite counter...
$230,000
Neighborhood: 3Rd Amd Mountain Vista Villas Condominiums
2
Beds
2
Baths
954
Sq.Ft.
2003
Year Built
1
Day on Site
6429078
MLS
2 bedroom 2 bathroom condo in Mountain Vista Villas. Heated Community Pool with Spa! Located in a gated community and close to shopping. This second floor unit is open with vaulted ceilings, split...
$1,298,000
Neighborhood: Legacy At The Pointe Lot 1-67 Tr A-N
5
Beds
3F11/2
Baths
4,272
Sq.Ft.
1994
Year Built
1
Day on Site
6429079
MLS
E X Q U I S I T E moon valley golf community residence with a full finished basement. Inside, you'll find a perfectly flowing layout showcasing clean lines in favor of a sleek & modern design....
$7,500
Neighborhood: Bridge Canyon Country Estates Unit 23
2
Beds
1
Baths
1,378
Sq.Ft.
1985
Year Built
1
Day on Site
6429082
MLS
1.197 acres unaffixed doublewide MH. 2bd 1ba - Great opportunity for some sweat equity. Seller does not have title to the mobile home. Priced to sell today.
$385,000
Neighborhood: Laurelwood
3
Beds
2
Baths
1,626
Sq.Ft.
1973
Year Built
1
Day on Site
6429083
MLS
Adorable 3 beds, 2 baths home waiting for you in Phoenix! Inside you'll find neutral tile floor and a welcoming living room. Cook your favorite meals in this kitchen that opens to dining room and...
Open 7/9
4143 N 34th Street Phoenix, AZ 85018
$1,150,000
Neighborhood: Palms Parkway 1
4
Beds
3
Baths
2,118
Sq.Ft.
1953
Year Built
1
Day on Site
6429084
MLS
Location Location Location!This move-in ready home was completely renovated from top to bottom, including the sewer line to the main, & owned solar panels. With added designer features throughout,...
$593,000
Neighborhood: Wildflower Point 2
4
Beds
3
Baths
2,347
Sq.Ft.
1998
Year Built
1
Day on Site
6429086
MLS
Welcome to this gorgeous neighborhood! Terrific 4 bedroom and 3 bath home with a 2 car garage. Enjoy cooking in this stylish kitchen with stainless appliances and a center island, great for food...
$79,900
Neighborhood: Sierra Vista Village
2
Beds
2
Baths
1,248
Sq.Ft.
1996
Year Built
1
Day on Site
6429092
MLS
Friendly front porch! 2 bedroom, 2 bath plus office/den. Dining room, breakfast bar. Good sized living area and master bedroom. 2 sheds. Chain link fence.

Post a Comment