Los Angeles Property Management
Los Angeles Property Management companies state that if you are planning move from your primary residence, be if it’s a single family home or an apartment, rental conversions are not to be taken lightly. If you’ve been living in the property for years and everything that a potential renter will want is already in place. You would assume everything would be an easy transition, Right?… Wrong!
It may be true, that some transitions are easier than others, there are a lot a variations that are taken into play. If buying a new rental property and stage and preparing it for tenants, it’s a possibility it’s going to take a bit more time and effort. In comparison to converting an existing home into a potential rental property. Although, there are still important considerations that have to be taken in before taking the plunge.
Los Angeles Property Management Find Insurance Coverage
Los Angeles Property Management companies share that the first step should be a clear implication of your decision on why you are converting your home into a rental, this should be discussed with your insurance agent. Los Angeles Property Management companies state that rental property insurance is completely different from homeownership insurance. Even though homeownership insurance normally covers personal belonging, while rental property insurance will cover only structural damage. Los angeles Property Management companies say that you’ll need additional coverage for any large item(s) that you plan to leave in your property. A good consideration would be to increase your personal liability coverage, this is due to higher risk that is involved with managing a rental property.
It’s a good idea to check with the local authorities, this is to ensure if you need a permit before you would want to convert your home into a rental property. Normally, a government inspector would examine the property for security clearances. Do make sure, that you have secured the permit in order to avoid any potential problems in the future, legal or not.
Los Angeles Property Management companies know that rental income is taxable, but, some deductions can be added to expenses from the income in order to lower the tax bill. Any money spent on maintenance, repairs, Los Angeles Property Management, insurance, mortgage interest and even travel expenses are deductible. Depreciation can also be deducted. Before doing anything, you should consult with a tax adviser, they’ll be able to show you your liabilities and entitlements.
Staging And Preparing Property
Los Angeles Property Management companies explain that even if you think that you are aware of every possibility of problems with the property, solely because you’ve lived there for years, it still has to get inspected by a professional home inspector before it can be rented out. If any problems arise like leaky roof, clogged gutters, a leak in the faucets or pipes, or even a burnt out light, it should be repaired immediately.
All safety equipment like fire extinguishers and smoke detectors should be in place and in working condition. Cleaning the floors, windows, blinds and carpets is a good idea, just because a dirty place can sometimes turn potential renter off.
Los Angeles Property Management companies say that after taking care of all of the above mentioned, you will then have to determine a monthly cost and you would have to evaluate comparable rental properties in the area to figure out a good listing price. An important decision would be if you would need to hire a Los Angeles Property Management agency to oversee the various tasks, they include of tenant screening, maintenance, repairs and rent collection, just to name a few.
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