Being a Landlord is More than Putting a “For Rent” Sign in the Yard

Renting can lead to secure creditWhen it comes to turning your home over for rent, it is like an investment of any other – you should be prepared for risk and also for reward. This means having plans and funds in reserve, and being ready to use them if you have to so you can protect your investment. “
Preparing to Rent Your Home
,” is a new article on the Equifax Finance Blog all about getting everything squared away to rent your home.
It is important to have capital reserves as a landlord, including for regular maintenance, repairs as they are needed and for emergency repairs that you may have to perform when there is a problem that could risk the structure itself. You can get landlord’s insurance (swapping from homeowner’s insurance) to help protect against these sudden costs. You may also want to consider liability insurance to keep yourself protected in the event something happens in the home that you may be responsible for.
In addition, there are a number of tax issues that come from renting, both in additional costs and write-offs. Firstly, the rent counts as taxable income, but any repairs made to the property can be written off. In addition, as a homeowner-turned-landlord, if you sell more than three years from now, any profit you make may be subject to taxes.
Learn more about real estate,
secure credit
, retirement and more on the Equifax Finance Blog.

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