Sometimes the biggest life changes present us with the most impactful opportunities. If you are going through a move to a larger home, this could provide you with an opportunity to enter the Colorado Springs rental market. Renting can be overwhelming, and we want to help – so we have compiled the list of the top 6 steps to take if you are interested in renting your home. Read on to learn what you can do to prepare yourself for rental success.
1. Notify your mortgage and insurance companies. When making the decision to rent, you will want to start by informing your mortgage company. This can help you get any additional paperwork out of the way, and also allow you to be fully aware of any mandatory agreements that you need to fulfill prior to renting.
Many insurance providers do not account for rental activities in a basic homeowner’s insurance policy. Because of this, you’ll also want to make sure you contact your insurance provider and inform them that you’ll be renting out your property instead of living in it. This ensures that you’ll have adequate insurance coverage and an updated policy, streamlining your process later. Also be sure to brush up on any local, state, federal, or association rules and requirements of landlords.
You may be wondering – landlord? Well, yes! In the eyes of the IRS, anyone offering rental options lasting longer than 14 days is considered a landlord. For tax purposes, you will need to report your income from the rental opportunity. However, this also allows you to take out deductions that you wouldn’t otherwise be able to qualify for. Your bookkeeper or accounting service can help you come tax time, and ensure that you are properly classified and filed for any future IRS audits.
2. Clean makes your home a rental machine. Let’s be honest – we want to put our best foot forward so that the tenant sees how the property should be maintained and get a baseline. After all – no one wants to move into a dirty home! You can use this as an opportunity to invest in professional cleaning services that allow each tenant to enjoy a fresh start.
3. Spruce up the landscaping. The outside appearance of the home can impact a renter’s opinion on what they’ll see on the inside. Plus, it sets the tone for how you’d like your property treated while it’s occupied. This step can greatly impact your ability to get a renter interested in your property, and keeping them for the long term. To find success in this step, consider this: how does your property look when someone arrives for the first time? You can make an impression by doing quick but effective updates to your exterior area: such as a fresh coat of paint on the door, new fences, garden updates, or other decorations.
4. Check all safety features. Safety features are absolutely imperative to check on the home. Not doing this step can leave you susceptible to potential liability. Before you accept renters, verify that all safety components of the home are functioning properly. Consider all possible items, such as carbon monoxide detectors, smoke alarms, safety alarms, or motion detectable lights. Also check the functionality of door locks, other protective systems, and sprinkler systems. You can also check for any potential trip hazards or other such risks.
5. Include welcoming materials in your home. You can take your renter’s experience to the next level by creating a way to incorporate a personal touch into the move-in experience. This can look like welcome baskets, gift cards, or a tourist kit for local hotspots in the area. You may consider including coupons or a list of popular attractions and eateries in the Rocky Mountain area, along with a small housewarming gift, like a tray of homemade muffins.
6. Enlist the help of a (local) expert. Don’t feel like you have to go through this alone. With our full-service property management offerings in Colorado Springs and surrounding areas, you get a wide range of services and a full team of skilled professionals with the expertise you need to maximize your return on investment. We service many local areas, including:
- Colorado Springs
- Old Colorado
- Monument
- Security-Widefield
- Palmer Lake
- Fort Carson
- Manitou Springs
- Fountain
- Black Forest
- Falcon
Managing your rental doesn’t have to be difficult. PMI Rocky Mountain works with the finest vendors to streamline your process and help you take advantage of the most advanced services in the industry. This can help you protect your investment and enhance your rental experience for your Colorado Springs rental property. Beyond being a full-service resource to you as you go through the rental process, we’ll also help you get optimized rental income out of your property, determine your cash flow from monthly rental value and gain critical insight into local real estate market conditions.