You are all moved into your beautiful townhome and you have it set up with all of your personal touches. You love everything about it — the spacious kitchen, the neighborhood, the cathedral ceilings, etc.
Now, you want to travel, go visit family or friends for extended periods of time or you come up with the idea of buying a second home to rent out your townhome to generate some income. Before you make that decision, here are some things you may want to consider:
HOAs – Can you Rent Out Your Home?
Zillow states that “according to the Community Associations Institute, more than 66 million Americans live in homes or neighborhoods managed by condo communities, cooperatives or homeowner associations (HOAs). These community associations appeal to many buyers — after all, the majority of their rules are put into place with the goal of maintaining property values and serving the best interests of the community. However, when it comes to renting out your home that’s part of an HOA-managed community, you should first do your homework to avoid any surprises or complications”.
Insurance
Prepare for the unexpected. Make sure you research your homeowner’s insurance to see if it provides coverage for your rental unit and discuss renters insurance with your future renters before they sign any agreements and move in.
Getting the Word Out
Most renters these days search online for their home. There are several online sites that you can put your listing on. Then, share your listing with friends and family and across your social media outlets. A referral from someone you know is a great way to find a tenant! Then, start showing your property.
Screening Renters
Once you have an interested renter, it’s time to have them complete a rental application. Make sure you run a credit and background check to verify income sources and previous landlord references. There are several online services that offer credit and background checks together. Be sure to follow the same process for each application you review.
Closing the Deal
You’ve found the perfect tenant. Now what?
- Get your security deposit
- Sign a lease
- Do a walkthrough
- Collect the rent
You are now a Landlord
While generating extra income by renting out your townhome, you’re also going to generate some extra work for yourself maintaining the property. That will be fairly easy if you are a handy person or live in the area. If that is not the case, you may want to speak with a property management firm to handle the responsibility.
If you live in your beautiful townhouse or rent it out for income, either way, enjoy your new investment!
If you’re ready to own a new home in Clearwater, check out one of the DiGiovanni Homes available! Our new homes offer spacious, open floor plans in the form of single-family homes, condos or townhomes in Tampa Bay’s best communities. Visit Digiovannihomes.com today to learn more!
