Steps for Transforming Your Home into a Rental Property

Transform your home into rental property

Did you know it is estimated that there are around 43.3 million homes for rent in the US? As a result, many property owners realize that renting out their property is a great way to get a recurring income. But do you know how to get started?

Unfortunately, it is not as easy as you might think. Read on as we discuss the steps to transform your home into a rental property. 

Why Transform Your Home Into a Rental Property?

This comes down to one factor, and that is a regular income from the rental itself. This can be used to go into savings, supplement your lifestyle or even pay off the mortgage. In addition, as the property appreciates, you stand to make a lot of money in the long term. 

Start by Checking All the Permits

Having the right permits for rental properties is essential, as you don’t want to fall on the wrong side of the law. Many municipalities will have their own guidelines on this, so check them thoroughly. In addition, it may be worth speaking to a local property attorney regarding this. 

Check Your HOA

If you are part of a homeowners association (HOA), they may have their own rules and regulations regarding rentals. Check in the documentation you got when buying the property, or speak with the members who run the association. This article may help you work out what you need to know about HOAs

Research Taxes

Make sure you are filing the correct taxes from your home rental. Filing late or incorrectly can result in major penalties and fines. 

Check the Mortgage

Your mortgage will contain an occupancy clause, which states it is your primary place of residence. This entitles you to lower interest rates and smaller down payments. However, if the bank finds out you are not living at the property and renting it out, they could cause problems, so check the legalities before going ahead. 

Determine How You Will Manage the Property

Owning rental properties is very rewarding, but it is a lot of hard work. In fact, it is often easier if you have a lot of them and can do it full time instead of balancing them with a job. If you don’t want the hassle, consider hiring home rental companies to do it for you. 

Home Renovations

Check the property to see if any major renovations are required and budget accordingly. This article on surviving a bathroom remodel can give you guidelines on one of the most tackled rooms in the home. 

House and Landlord Insurance

Finally, protect yourself with the necessary insurance. Accidents are bound to happen, and you need to protect the home and yourself as the landlord.

Getting Started

Now you know the steps to transform your home into a rental property, you can begin earning extra income. Cover yourself legally, do your research, and make some renovations.

If you are thinking of buying, selling, or renting in the Salt Lake City area, Market Source Real Estate should be your first stop.

We even offer relocation services if you are new to the area. So contact us today and let us help you find your dream home. 

How to Find the Right Tenant for Your Rental Property

Tenant for Rental Properties

Did you know, 16% of low-income tenants cannot pay the full amount of their rent every month? So how do you prevent problems such as this from happening? The key is to make sure you find the right tenant for a rental property.

Doing so takes careful planning and follow-through. Let’s take a look at what you need to do to make sure you find the perfect tenant for your properties.

Set Your Own Rental Criteria

Well-thought-out rental criteria are key to making sure your future tenants will be a good match. A common requirement is that the tenant has a gross income of at least three times the monthly rent. This ensures they have the income to pay the rent.

You should also make sure they have steady employment or a co-signer with steady and sufficient income to ensure that your tenant will continue to pay their rent. You may also want to consider a minimum credit score.

Setting lifestyle requirements for your rental properties is also a good idea, especially for your primary residence. For example, will you allow smoking and pets in the unit? Some landlords also find it helpful to have requirements based on possible criminal history.

Get To Know the Applicant at the Property Showing

Showing the property provides a great time for you to meet and get to know the applicant either in person or virtually. As a result, you can better understand who they are and how to work with them.

Try to pay attention to how they act. For instance, do they show up on time? Do they seem friendly and nice to work with? These types of characteristics can indicate that they may be a pleasant tenant.

Check the Tenant’s Rental History

A tenant’s rental history can indicate how they will be if they rent from you. You should reach out to their previous landlords to confirm that the tenant actually rented from them and paid the rent on time.

In addition, ask if they took good care of the property and left the unit clean and in good order when they moved out. You can also check if they were disruptive to any other neighbors.

Research the Tenant Credit Report and Run Background Check

credit report can be a great tool to learn about the tenant’s payment and debt history. This can be an indicator if they will pay on time and be able to afford your rent.

You may choose to run a background check to see if the tenant has a criminal history. Just note that there are guidelines for using criminal background information if you are evaluating someone as a potential renter.

Use a Real Estate Agent

A real estate agent can make the process easier. Instead of going through each of these steps, an agent could take the lead on it. In addition, having a property manager or real estate agent can allow you to have a more hands-off approach to renting.

In addition, they can make it easier to ensure that you follow landlord-tenant law and don’t risk legal trouble by infringing on tenants’ rights.

Find the Perfect Tenant for Rental Properties

Finding the right tenant for rental properties can be an overwhelming process. First, you need to make sure you identify useful rental criteria and that your potential tenant meets them. However, a real estate agent can make finding a tenant and property management much easier.

Contact Market Source Real Estate to get started with your rental property today.

Best Places to Buy Vacation Property in Utah

Vacation Properties in Utah

Whether you’re looking for a second home where you can spend family vacations or you want to expand your property portfolio, Utah is an excellent choice. With large cities, quaint towns, and breathtaking natural landscapes, Utah has it all.

So if you’re looking for vacation properties in Utah, what are the areas you should be browsing?

Keep reading as we review the top towns and cities in Utah that make great locations for buying vacation homes.

Logan

When discussing vacation properties in Utah, we couldn’t neglect Logan. The population of Logan is booming, making it an ideal time to invest in property there.

One of the biggest attractions is Utah State University. If you’re looking to rent out your vacation property, Logan is one of the most lucrative options on our list, as rental prices are particularly high.

Salt Lake City

Boasting the largest population in Utah, Salt Lake City makes a fantastic choice for your vacation property for many reasons. In addition to the great nightlife and restaurant scene, there’s also a wide variety of neighborhoods.

Some of our favorite areas of the city are the historic neighborhoods such as The Avenues and Capitol Hill. As you can imagine, the backdrop of the Oquirrh Mountains never gets old.

Park City

Next up on our list of great places in Utah is Park City. Situated about 30 miles east of Salt Lake City, Park City is home to some of the best skiing resorts in the country.

If you’re an avid skier and you find a beautiful vacation property for sale in Park City, this is surely too good of an opportunity to miss.

St. George

Another hotspot for vacation rental properties in Utah is St. George. Located in the southwest tip of the state, St. George is an exceptional choice for those who love the outdoors.

Near both state and national parks, not to mention the Grand Canyon, St. George makes perfect sense for those who love to hike and explore while on vacation.

Southern Utah

Last but not least, there are many great locations for buying rental properties in Southern Utah. With options such as Cedar City, Bluff, and Hurricane, this is where to go if you want to be near the jaw-dropping sandstone panoramas.

If you’re looking to rent out your second home, there are plenty of companies offering vacation property management services here.

Those Are Your Best Options for Vacation Properties in Utah

Having explored the top locations when looking for vacation properties in Utah, it’s time to take the next step. Consider which of these places speak to you and what you’re looking for from a vacation home, whether that’s the thriving scene of Salt Lake City or the stunning backdrop of St George.

If you’re looking to buy or sell a property in Utah, Market Source Real Estate has your back. Click here to contact us, and our expert realtor team will be honored to get to know you and your specific needs.

Should You Buy a Property With an ADU in 2021?

Accessory Dwelling Unit

Buying a house can be an exciting time. It’s a chance to find your new home and a new place to make years of memories. However, any house you buy is an investment.

As such, you want to find a home that appreciates as time goes on. Several features can help attain that increased value, one of which is an accessory dwelling unit.

An accessory dwelling unit (ADU) is a smaller, secondary building or space resting on a larger building plot. They can significantly increase your home value in 2021. In this article, we’ll explore more about ADUs and how they can benefit your household.

Are ADUs Worth it?

ADUs are excellent ways to add long-term equity and value to your property. So long as they remain well-kept, an ADU automatically adds significant value to your property when you decide to sell it.

You can also use an ADU as a way of making passive income. For example, if your ADU is a detached one (not in a garage or other space joined to your home), you can rent it out to people and collect money from their rent and bills.

However, to understand this more fully, we’ll first need to examine types of ADUs. You can learn more about this in the next section.

Types of Accessory Dwelling Unit

There are several types of ADUs in 2021, each with its advantages. One of the most common forms is the built-in ADU.

This form is a part of the house but separated by an interior wall. A universal feature of built-in ADUs is their separate entrance and exit from the main structure.

Another frequent ADU type is the above-garage ADU, which consists of an apartment building over a free-standing or attached garage. Often, business owners love to use the above-garage ADUs as an office for their home business.

Carriage houses are the last common ADU type. These are usually free-standing, small houses that share the primary home’s lot. They’re often located near the property entrance to give them a sense of privacy from the main household.

Who Can Build An ADU?

Who can build an ADU often depends on the building codes in your area. Usually, an architect or contractor is the standard. These workers have the experience to construct what you need.

Moreover, they have more reputability as builders. As such, they can more quickly receive the required building permits for the job.

Benefits of ADUs

We’ve noted several benefits of ADUs throughout this article. First, they help to add long-term value to your property. As such, you can sell the property for more than you purchased it.

Another benefit is its potential for earning passive income. Owners of ADUs can use the space for house renters. Alternatively, you can use the ADU for your storage or workspace.

Mortgages and Taxes on ADUs

The biggest downside to ADUs is the increase they bring to your property taxes. When you add an ADU, most areas factor it into your property taxes and mortgage payments. However, if you use the ADU as a source of income, you can offset the additional costs.

Search For a Property With an ADU

As you can see, an accessory dwelling unit brings many advantages. For example, you can use it for extra space to work from home or use it for additional income.

Suppose you’re interested in owning an ADU; excellent! Use our services to search for properties with ADUs in the Salt Lake City area today.

Differences Between Old and New Construction Homes

Differences Between Old and New Construction Homes

​The average potential buyer spends 10 weeks finding their home! Put yourself ahead of the competition by going into your house hunting journey by having a good idea of what you’re looking for before you get started.

One of the most important aspects of real estate is to familiarize yourself with the features of old vs. new homes. Read on to learn about the major differences.

Materials

Whoever said the phrase “they don’t make it like they used to” was probably talking about real estate.

Older homes are typically built with wood, while newer homes are usually made of concrete, depending on where you live. Even newer homes are built out of wood using a different wood quality than they did decades or even centuries ago.

It’s not just the base of the house that is built differently. Think plaster vs. drywall; old homes used plaster, a thick and almost concrete mixture when dried, while new homes have drywall, which is essentially a thick cardboard wall.  While drywall does have its benefits, it’s less durable.

Natural Light

This may not be something that a potential buyer would think of when buying a house, but it’s an aspect of the home design that can greatly impact the place’s vibe.

Older homes have more windows and let more light filter into the house. Newer models have energy-efficient, weather and light-blocking windows that help save money but let less sunlight in.

Energy

New homes are built with saving energy in mind, and the builders often tailor them to withstand the local weather.

Older homes may not be as energy-efficient because they were built before insulation became popular. In addition, houses built before 1965 have different electrical wiring systems that are much less effective and costly (fire hazard). However, if you fall in love with an old home but worry about the use and cost of energy, there is an option to rewire the house and take other measures to improve efficiency.

Design

Old construction homes tend to be smaller than new builds. For example, in 1960, the average square space of a new home was 1,289 square feet. In the 21st century, new constructions averaged around 2,500 square feet.

Old homes may have less surface area, but the design of old homes is conducive to feeling like there is more space. For example, older homes have narrower hallways that lead to large rooms with high ceilings. And there is certainly one thing for sure, old houses have more character than their new counterparts. Modern homes tend to have the same general open floor plan and are often described as cookie-cutter. However, old homes tend to have more personality. 

Location

Older homes tend to be closer to the city or town centers, while new construction is often pushed to the outskirts of town where there is space. Being secluded is a huge plus for some people, while others want to be right in the hustle and bustle.

Pricing

When you’re patrolling the market for a house, you’ll notice that older homes are usually less money per square foot than new builds. This is due to the rising cost of labor, land, and materials.

Teaming up with a real estate agent will give you the best opportunity to get a good deal.

You Decide: Old vs. New Homes

You’ve made your pros and cons list. You’ve considered all of the benefits of purchasing old vs. new homes. So now, how do you get your hands on a home to call your own?

Whether you fancy older construction homes or modern builds, Market Source Real Estate can get the home buying process started for you today. Contact one of our agents or browse our houses for sale in the Salt Lake City area.