Should I Turn my Home into a Rental Property?

The market is definitely beginning to move again and I have been doing a number of rental appraisals for property owners moving on from their current homes. They are trying to decide whether to sell it or rent it out as an investment property?  Here are a few things to consider before turning your home into an investment property:

Emotional Attachment

If this home has been your family home for many years, you might find it difficult to separate yourself, emotionally, from the home.  This usually means that, emotionally, it could be quite challenging to have a different family living in the home, caring for it differently.  Be prepared that your tenants won’t look after your family home the same way you would, and decide whether you can emotionally handle this.

Tenant Appeal

You bought your home because it appealed to you and your family, but this doesn’t mean that your home is necessarily appealing to most tenants.  Consider the features that attracted you to the home, and ask yourself if you think that these features would be appealing to the “average tenant”.  You might even decide to ask a professional Property Manager to come and have a look through your home and make recommendations on the types of tenants it would appeal to, or if your home is particularly unique and only appealing to a smaller number of tenants.

Those little outstanding jobs

I couldn’t begin to count the number of times that I have been into someone’s home and they tell me that they have just got a few little items to finish up before they rent it out. All those little quirky jobs that you have been “meaning to get around to” will need to be completed. Tenants will not put up with that wonky door handle, flickering light or the missing vinyl that you have lived with for the last 3 years.

Rental return

You need to run your figures carefully- Is the return on your current home better than you may get investing in another sort of investment property?