Income Property: Tips for Renting Out Part of Your Home or a Seasonal Property

One of the benefits of owning property is having the ability to turn it into a source of supplemental income through renting it out to others. Whether you’re renting out part of your home or taking on a tenant for a seasonal property, below are some important things to remember in order to ensure a win-win situation for all parties.

1. Think about ways to maximize your income potential while offering key benefits for your tenants. For example, if you’re renting out a part of your home, choosing a room with its own private bathroom will be your “money shot” in terms of garnering higher rents, and your tenant will have a greater level of privacy as well. If you’re in a situation where you really need the cash, you might want to consider moving out of the master bedroom – since it typically has its own bathroom – and renting it out while you set up shop in a smaller bedroom. For renting out a seasonal property, bear in mind that making your home available during peak times of the year (typically Memorial Day through Labor Day) will usually command more revenue. Taking this approach will provide a higher level of convenience for your tenants, as well as more money in your bank account.

2. When renting out a part of your home, visit sites like Craigslist, EasyRoommate, Roommates.com, or Rentometer.com to get a good feel for what people are charging for similar accommodations in your area. That way, you can come up with a reasonable rent rate based on the norms in your city. For a vacation or seasonal home, find out what the local market is willing to bear, and adjust your rental rates accordingly.

3. Thoroughly vet potential tenants before you agree to let them rent your property. You should definitely conduct an initial interview to check on their employment status, as well as to get a general idea of what type of living habits they have. Ask for references, and if possible, run a criminal background check and credit check on them using one of the many tenant screening services that are on the market, such as MySmartMove or TenantBackgroundSearch.com. In addition, be sure to trust your intuition, because it will hardly ever fail you in terms of making you keenly aware of red flags.

4. Protect your privacy by removing and securely storing any personal items (e.g., clothes, jewelry, photos, and other valuables) that you wouldn’t want to risk being stolen or damaged.

5. For added security, install keyless locks on all bedroom doors as well as exterior doors. This will offer an additional layer of privacy and protection for you and your tenant(s). A keyless lock such as the Schlage FE575 is perfect for both interior and exterior use, and it’s far more convenient than perpetually having to keep up with keys and/or change out locks!

6. If you plan to list your home or vacation property on websites such as HomeAway, VRBOor AirBnB, consider using the BeHome247 Property Control package to make managing your property a piece of cake. Not only does the Property Control Package help you automate many of the not-so-thrilling tasks of property management such as guest check-in and coordinating service personnel, but it can also help you keep a close eye on the finer details of your property including thermostat settings, lighting control, smoke and water leak detection, etc., all from your smartphone or other Internet-enabled device. You can create unique access codes that are good only during your guests’ visits, and you can receive notifications when certain codes are being used. Using the BeHome247 online portal, you can manage every aspect of your guests’ stay with remarkable ease.
Becoming a landlord will definitely make a difference in your bottom line, but it’s not something to enter into haphazardly. Use the tips outlined above to inform and enhance your property management experience, so that you can derive the maximum benefit from your income property!

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