If you’re lucky enough to own a home with an empty mother-in-law suite, finished basement, or separate guest house, chances are you’ve already considered renting it out. It probably seems like a no-brainer. A little extra income to help you make your mortgage payments, you get to pay off your house faster, and if anything goes wrong you’re right there.
While it can be a great, before you get too ahead of yourself make sure you know the answers to the following questions
- Do you know your neighborhood or city ordinances rental zoning law? Because rental zoning laws can limit only one “household” per house, restrict the number of residents per house, and even require you to meet extra qualifications for multi-unit housing. And if you don’t follow zoning law, you can be subject to fines.
- Do you know your HOA covenants concerning renting your home? If you are a member of your neighborhood’s home owner association, you are subject to following its rules. And some HOAs place restrictions that won’t allow you to rent your property or will only allow a certain percentage of homes to be rented and once the limit is reached your home will be placed on a waiting list.
- Are you cut out to be a landlord? It’s a responsibility and, depending on your tenant, can take a large amount of your time and patience. And since the unit you’d be renting is in close proximity to your residence (sometimes very close!) you have to be willing to enforce your rules. You’ll need to get to know fair housing standards and consider whether you would be OK renting to someone who lives a different lifestyle than you.
Once you’ve thought about it and you decide to proceed with renting out your residence, it’s important determine a rental rate. The easiest way to do this is to jump online and see if you can find comparable rentals in the area that give you a good idea of what’s an appropriate rental rate.
If you have further questions about renting your property, reach out to one of our BHURDinUtah agents. We’re happy to answer your questions and provide any market insights to advise and protect our BHURD client family.