Turn your home into an income property Taking on a large debt such as a mortgage is a sobering experience in life. Life events can bring unfortunate layoffs or illnesses. Secure your investment with the addition of an Income Property. What is an Income Property? A property that is bought or developed to with the idea to rent or lease, a property that is not for personal use rather extra income.
Many home owners take comfort in knowing that their mortgage is covered in the event of unforeseen circumstances.
Do you have a separate entrance into your garage or additional part of your home? Do you have a suite set up with a bathroom already? If you have these things already you have a head start on the rest of us. Renters are looking for a space that is private and that they can call their own. No one wants to rent a place with no space to cook in or shower. So consider the cost of a kitchenette and bathroom. You can budget for at least $10,000 and higher to add on a rental suite. Don’t invest too much in fancy upgrades, but don’t go for the cheapest fixtures or appliances either. And NEVER plan to cut corners with this Income Property Addition. Cutting back on things like good insulation and quality drywall can seem like a good idea when you are coming out of the pocket for this addition, but the rate of tenants will be high if the living condition is not ideal. Good DIY projects include assembling cabinetry, putting up baseboard and trim, and laying laminate floors. Call in the professionals for drywall and plumbing, electrical and heating work. If you can see yourself living in the space for a year or so, then you have accomplished the goal of adding on an Income Property.
Now that you have all the basics of an Income Property; living area, bathroom, kitchen and sleeping arrangements you can now think of additions to your Income Property that will increase the rent. A washer and dryer can increase the amount you can charge by $50-$100 per month. You can charge another fee if there is a dishwasher in the kitchen. You can charge more if you have a full bath tub versus just a shower. Check local apartment guides and see what compares to your Income Property so you can price your property accordingly. No one wants to pay an outrageous rental amount for a property that is lacking in size and amenities, when there are more for less the rent.
If you are charging for utilities in the rent for your Income Property, be sure to have installed energy efficient appliances and a low flush toilet. Thinking Green can make you money rather than lose it.
Good luck with your Income Property addition, stay tuned for more remodeling tips!