How to Turn Your Primary Residence Into a Rental Property

rental property

Did you know there are nearly 48.5 million rental units in the United States? If you’ve ever paid rent in a big city, you know how profitable a rental unit can be.

Now you own a house of your own, and you’re ready to move. Rather than put it on the real estate market, you’re thinking about making it pay over the long term and converting it into a rental property.

Sounds easy, right? Not so fast. There’s a lot you need to do to prepare your former primary residence for a rental property.

Obtain Licenses and Inspections

Turning your home into a rental home isn’t as easy as listing it for rent. To be a landlord and rent your property, you must first get all the licensing and inspections.

Depending on the state and city your rental unit is in, you’ll need a landlord license to transform your primary residence into an investment property. This licensing may include a business license and/or a rental license.

To turn your house into a rental unit, you’ll also need the proper municipal inspections and permits. An inspector looks at the residence to determine whether the building suits occupancy.

Do You Want to Be a Landlord?

The life of a landlord isn’t just collecting rent. You put your property and your mental well-being at risk.

Appliances break, pipes burst, and roofs leak. Tenants might not pay their rent on time (or at all), and then you’re involved in eviction proceedings.

In other words, owning a rental house and being a landlord is another job. Do you have the personal bandwidth to take this on?

Home Insurance

When you file the proper licensing paperwork to turn your home into a rental unit, your homeowner’s insurance policy covering your primary residence voids.

You’ll need to shop for landlord insurance that includes dwelling insurance, water or flood, and rental income insurance to cover lost rent.

Get Your Taxes Straight

Investment properties follow different tax rules than primary residences. Interest deductions change, and different laws apply.

For example, under current tax laws, you can deduct mortgage interest. You can also write off any other occupational expenses like repairs and maintenance work.

Before you begin renting your home, consult your accountant to get your taxes in order.

Prepare for the Rental Market

To make money, you need to establish the quality of your place so you can charge on the high end of the prevailing rental market.

Make any renovations necessary to make your house more attractive. This might mean updating the kitchen, the floors, and or major appliances.

The next thing you need to decide when you’re offering your home for rent is whether you’ll hire a property manager. If you do, you need proper worker’s compensation

Interest Rates on a Primary Home vs a Rental Home.

Primary home mortgages typically have a significantly lower interest rate than if you tried to buy a property strictly as an investment property. The mortgage company typically requires you to live in the home for 1-2 years before turning it into a rental. Once the 1-2 years is up, you can rent it out while still taking advantage of the lower interest rate. Plus, you can then purchase your new home at a primary rate as well. 

Turn Your House Into a Rental Property

Are you planning a move? Rather than sell your house, why not turn it into a rental property? It’s a great way to get involved in real estate investment and make money.

Are you ready to be a landlord? Get your unit on the market with us!

Meet Jennifer Holmstead: Realtor and Property Management Expert

Jennifer Holmstead

Are you looking for an agent with a background in business and a love for real estate? Market Source agent Jennifer Holmstead has both. She is a longtime resident of Salt Lake City, a graduate of Westminster College, and an employee at Market Source Real Estate. Jennifer has financial training and insider knowledge about the Salt Lake City real estate market.

Background

Jennifer Holmstead bought her first home in late 2006 – right before the crash of real estate prices everywhere. For a few years, she thought there was no chance she could regain the equity she’d lost. So, she threw her efforts into other endeavors and began managing a local business and returning to school.

While studying for an MBA at Westminster College, Jennifer had to analyze her assets. The housing market had rebounded by then, and she realized that her home had become her strongest financial asset.

Becoming a Real Estate Agent

After managing a local business for 15 years, Jennifer was ready for a change. A few years ago, she decided to join her good friend Monique Higginson at Market Source Real Estate.

Monique Higginson founded market Source Real Estate in 2007. Now, it’s a growing office; Jennifer joined a team of more than a dozen agents, staging experts, and marketing experts. One reviewer says that everyone working at Market Source Real Estate is highly professional and focused.

Jennifer found that Monique, one of the top real estate agents in Salt Lake City, was an excellent mentor. Monique, the principal broker at Market Source Real Estate, works hard to bring new hires like Jennifer up to speed. As part of her training, Jennifer worked on over a hundred deals with Monique and felt like she hit the “new agent jackpot.”

Now a fully trained and experienced real estate agent herself,  Jennifer takes on her own clients. Jennifer works to help others achieve the dream of homeownership and attain what her home’s equity has given her: autonomy, freedom, and choice.

Supporting Local Areas

Jennifer loves supporting local communities. As a Westminster College student, she specializes in the Sugar House neighborhood, where the college is located. The Market Source, Real Estate office, is also located in Sugar House, giving Jennifer even more knowledge of the area.

Jennifer enjoys all the benefits Utah has to offer. She loves exploring the diversity of Utah’s attractions: road-tripping through small towns, hiking the Millcreek canyon and camping in the mountains. Sometimes she visits southern Utah to go hiking through its red rock canyons.

At home, she shops at farmers’ markets to support local farmers and relaxes in front of the fire pit in her backyard.

Contact Jennifer Holmstead

If you’re searching for “real estate agents near me,” and you want an agent who is passionate about her city and her real estate customers, contact Jennifer Holmstead. She’ll help you find the house that fits your own personal and financial needs so that you can build your own equity and enjoy financial freedom in your dream home.

Meet Monique Higginson: Her Journey and Involvement With the Sugar House Community Council

Monique Higginson

Are you looking for a Salt Lake City real estate agent who knows how to locate historic buildings? Do you want someone with experience? Do you want someone who not only cares about her community but also works with others to improve it?

Monique Higginson might be the person you’re looking for. Not only has she been voted one of the 500 best real estate agents in Salt Lake City, but she’s also an expert in buying and renovating old homes.

Read on to learn more about Monique Higginson and how she can help you find your dream home.

Background

A lover of architecture and design, Monique earned her degree in art from the University of Utah before turning to real estate. In her 18-year real estate career, she has helped hundreds of clients buy, sell, and invest in homes in Salt Lake City, even in the worst of markets.

Monique founded Market Source Real Estate in 2007. Her hard work, local knowledge, and customer service kept her company strong during the economic downturn.

Historic Buildings

Not only does Monique help clients buy homes, she remodels them as well. After owning 25 homes and remodeling several of them, Monique has learned to treasure each home’s unique characteristics.

Monique loves homes in Salt Lake City’s historic neighborhoods and has renovated several older homes in the Sugar House area. She has managed several construction projects herself. Recently, she helped to found a construction company to provide the quality service she expects.

Current Work

Monique now runs Market Source Real Estate, leading a team of eight real estate agents. Employees appreciate the way she mentors and teaches new additions to the team.

Monique provides attention to detail, industry knowledge, and an insider’s understanding of the Utah market. Her team is experienced in staging, marketing, and negotiating on behalf of their clients.

Monique has been voted one of the best 500 real estate agents in Salt Lake City.

Community Service

Monique serves as a trustee on the board of the Sugar House Community Council. One of Salt Lake City’s older neighborhoods, Sugar House, features historic residences and a vibrant community of new restaurants, boutiques, and artists.

Monique owns a home in Sugar House, so she’s especially interested in serving the community. Her work helps the council preserve the area’s history, support small businesses, and create a vibrant atmosphere.

As she works to make her community better, she makes local friends and connections to become a better resource for her clients. Her local knowledge serves her well as she works with customers to find their ideal homes in the Sugar House and other areas.

Work With Monique Higginson

Monique Higginson is uniquely situated to help with your real estate needs with her dedication to her customers and her community.

If you’re asking yourself the question, “who are the best real estate agents near me,” contact Monique Higginson. She’ll use her local knowledge and connections to help you find your dream home.

New Years Resolutions For 2021

buying-an-investment-property

At the end of each year, people are bombarded with holidays, family, gift-buying, and good food. It’s a joyful time when we allow ourselves to indulge in shopping, eating, and self-care. And that’s okay.

However, this is also time to start thinking about improving our lives after the holidays. What do your goals look like for the new year? What can you do to be happier, healthier, wealthier, or more successful?

Having trouble getting started?

No worries, Monique is sharing a few of her personal goals, so you can feel free to join in! Here are our top Market Source Real Estate, aka MSRE New Year’s resolutions for 2021.

Exercise More

Monique’s top goal is to exercise more.  One of the most common goals people have for the new year is to get into better shape. Exercising more can lead to better heart health, improved immunity, more energy during the day, better sleep at night, and a slimmer waistline.

Come up with a practical workout routine you can follow in 2021. For the sake of longevity, start slow and build yourself up.

Eat Healthier

Another goal for Monique is to eat healthier food.  She is vegetarian and always looking for healthier ways to eat on the go as a real estate agent.  

Part of being healthier is putting the right foods in our bodies. An important MSRE New Year’s resolution for 2021 is to eat healthier regularly. Eating whole foods without added fats and sugars can help you lose weight, feel more energized, and more.

Engage More With Your Children

The pandemic has taken its toll on people throughout 2020. However, there is a silver lining. Being forced to stay home and social distance has allowed some families to reconnect. Monique has loved more time with her kids. 

This year, she plans to lean into this unexpected benefit of COVID-19 and engage more.  You can do this too with your children, spouse, and anyone else in your household.

Survive the Pandemic

If you’re like most other Americans, you spent much of this year trying to figure out how to survive the pandemic. Between social distancing mandates, heated mask debates, and the fear of contracting the Coronavirus (or actually contracting it), it’s been a difficult ordeal.

On New Year’s Eve, think about how you’re not only going to survive the pandemic but how you’re going to thrive despite it.  That’s what Monique will be doing.

Pick Up a New Hobby

One MSRE New Year’s resolution for 2021 could be to pick up a new hobby. For example, Monique recently started golfing and would really like to spend more time pursuing this hobby. It’s fun, relaxing, and is a great sport for social distancing. 

Think about your interests. Have you neglected an old hobby lately? Or perhaps, you’ve been itching to try something new?

Create a New Professional Goal

Finally, no New Year’s resolution list is complete without a professional or financial goal. Where do you see yourself by the end of 2021?

Do you want to advance in your career? Maybe your goal is to pay off a substantial amount of debt? Dream big and start making plans to achieve those goals.

Want to Smash Your MSRE New Year’s Resolutions for 2021?

Is 2021 going to be your year? There’s certainly no reason it can’t be. If you’ve got big New Year’s resolutions for 2021, attack them with full steam!

And if one of your goals is to change your living situation, we’re here for you. Whether you need help buying a new home or selling a home, we’ve got your back. We are an experienced team of real estate agents in Salt Lake City committed to helping people just like you.

Places to Work up a Sweat in the Winter

buying-an-investment-property

Salt Lake City (SLC) has a lot to offer to its metropolitan area of over 1 million people. There are many fun ways to stay active outdoors in Utah. But what about staying active when the cold winter weather hits?

If you’re wondering how to stay fit in winter, you’re in luck. There are many great places to workout in SLC. Keep reading to discover your new favorite gym.

Feel Empowered at Boxing is for Girls

Boxing is for Girls is a boxing studio run by the inspirational Eliza James. All genders, not just girls, are welcome to train alongside hardworking women at the studio.

At Boxing is for Girls, you’ll find a wide variety of training and classes. You can choose from one-on-one training, group fitness, and yoga. You can even attend an inspirational and healing retreat through the studio. 

Find Boxing is for Girls in a gritty and colorful renovated garage in SLC’s beautiful Sugar House neighborhood.

Get Fit in 45 Minutes at Peak 45

Dominate your winter workouts in 45 minutes at Peak 45. Peak 45 has locations in Salt Lake City and Park City.

The workouts at Peak 45 are uniquely challenging. You will improve your flexibility, strength, core, and endurance every time in just 45 minutes. 

This studio uses a method called Lagree Fitness. Lagree is a series of low-impact exercises done with a unique machine called the Megaformer. The trick to the burn is that you are under continuous tension, and the movements are slow and controlled. 

Build Your Strength at 212 Fitness

If you want to focus on strength training, 212 Fitness in SLC is the place for you.

212 Fitness believes in crushing strength and conditioning goals with the help of the community. As a group gym, you’ll feel encouraged by working hard with a consistent group of people.

The experienced coaches at 212 Fitness will help you reach your goals and have fun along the way.

If you’re looking for cheap places to workout in Salt Lake City, you can get your first week at 212 Fitness for only $7. 

Sweat it Out at Rideologie

If you love cardio, you don’t want to miss the spin classes at Rideologie. Get your blood pumping and heart pounding during one of their dance parties on a bike.

All experience levels are welcome to join the indoor cycling classes at Rideologie. Wear some sweat-wicking clothing because these 45 or 60-minute classes will have you sweating and burning up to 700 calories!

At Rideologie, you can build a membership that fits your needs. Purchase drop-in classes or class bundles.

Challenge Yourself at Brickwall CrossFit

If you haven’t tried CrossFit yet, this winter is the perfect time to start. CrossFit is a form of high-intensity interval training (HIIT). The method uses day-to-day movements like squatting, pushing, and pulling at a high-intensity level.

Brickwall CrossFit will train your entire body to prepare for whatever life throws at you. CrossFit will build your strength and endurance. Other activities, like biking, swimming, and hiking, will become easier and more fun.

Brickwall CrossFit encourages constant learning and improvement. The supportive group or one-on-one environment allows it to happen.

Now You Know the Best Places to Work Out in SLC

If outdoor winter workouts aren’t your thing, you’ve got some fabulous indoor options to work out in SLC. You don’t need to feel cooped up in winter when you can get active and have fun instead.

With all the great amenities Salt Lake City has to offer, there’s no doubt it’s a fantastic place to live. Be sure to contact us for help with your home search.

Real Estate Trends in 2021

buying-an-investment-property

With so many significant changes in 2020, we expect to see some major developments in 2021 real estate trends. This is due to the pandemic, it has changed how many people think about housing and work. 

We’re expecting more people to move out of cities or away from their offices because they no longer need to be close to work. House hunting will continue to be affected by social distancing until we all can get a vaccine. And, younger people will realize they can afford more property than they thought.

Suburban Growth and Working from Home

Two big trends coming in 2021 are caused by the changes in 2020 to work and society. With so many people starting to work from home, realtors have seen an increase in people looking to move out of cities. They want space and safety in their preferred neighborhoods rather than commuting convenience.

The growth in buyers wanting to move to the suburbs is a direct result of the Covid-19 pandemic, people are realizing they can work from home. Those who used to live in a city have quickly realized they can get much larger housing for the same or less money as they would in a city.

Moving away from urban centers has also become a trend because of unrest and protest that we’ve seen in larger urban areas in the past twelve months. As we move into 2021, this trend for buyers to seek homes in less congested areas will continue.

Virtual House Hunting

Another 2021 real estate trend is the move to online house hunting. Whereas home buyers have always wanted to visit houses in person as part of buying a new home, the pandemic has meant that more people are willing to view homes through virtual appointments. This is a significant change in how realtors and buyers operate.

Expect to see improvements in virtual home tours as we move into 2021, as we’re still practicing social distancing and dealing with the effects of the coronavirus. 

Millennials Moving Up

Millennials are one of the fastest-growing homeowner demographics. Moving into 2021, more millennials will enter the housing market. They will soon account for more than half of all home buyers. 

Millennials buying homes also ties into the first of the 2021 real estate trends we discussed. In the past, the youngest age demographic segment tended to look to rent or buy in urban or downtown areas. However, with remote work becoming more accepted, millennials are also joining the hunt for homes outside of cities. 

Part of this trend is that millennials realize they can now afford more of a house than before if they swap high-priced rent in cities for land and square footage in the country or smaller towns. This change in mentality leads to the trend of millennials “moving up” in the housing market.  

Keep an Eye on 2021 Real Estate Trends

As you can see, the changes that have occurred in all our lives will keep affecting real estate. We’ve highlighted three of the biggest 2021 real estate trends here because they are going to change how you think about buying your next home.

Remember, cheaper, larger, safer property outside or urban, downtown locations are booming. Improving technology will make house hunting virtually much better. And, the market is getting an influx of younger buyers with money to spend.

For more advice on real estate, get in touch with us today.