Five Tips for Transforming Your Home Into a Rental Property
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Some homeowners with a personal attachment to their homes may consider renting out their property instead of selling it. Others may rent their properties to create an additional income stream. Read on for helpful tips if you plan to turn your Chicago home into a long-term rental, presented by Lettuce Organize.
1. Set Up an LLC
If you want more flexibility and protection, set up an LLC for your rental business. Use a formation service, or file the forms yourself to avoid paying lawyer fees. But before moving forward, check the regulations regarding forming an LLC in Chicago.
Decide on a business name, and designate a registered agent for your LLC. Prepare your Articles of Organization, and submit them to your state. Next, create an operating agreement, a document containing relevant information on how your business operates. Once the LLC is formed, ensure your rental business stays in good standing.
2. Enhance Your Outdoor Space
Make your home more desirable to prospective tenants by improving its outdoor space. Work with landscaping professionals to revamp your yard and make it more enticing to renters. Before getting a quote and discussing your needs with local contractors, make a thorough evaluation, and read reviews about their services online. If you're concerned about the costs, look for landscaping companies offering credits or deals for landscaping projects.
3. Create a Video Showcasing Your Property
A video can bring your rental property to life and attract more tenants. Your potential tenants can quickly see the room size, floor plan, and other relevant features. To attract more prospects, a company such as Lettuce Stage can stage your rental property to enhance its visual appeal in the video.
Hire a professional photographer to ensure a high-quality video that you can post on your website and social media. You can use a merge video tool to combine video files to create video content that's appealing and helps produce results. The tool also allows you to edit the video and share the best captured moments. Once the video is completed, if you already have prospects, send the video to them.
4. Attract the Right Tenants
A good tenant has a track record of making payments on time, is respectful to the neighbors, and has a steady income. You can find a good tenant by doing a full screening process, including checking their credit score, getting references from previous landlords, and acquiring a clean background check. To ensure good tenants stay longer, fulfill your landlord obligations.
5. Hire a Property Management Company
If you live far from your rental property, it's practical to hire a property management company to handle all the paperwork, collect the rent, and communicate with the tenants. Your property manager can also assist with legal procedures in case the tenant needs to be evicted from your property. Choose a local property management company that offers additional services, such as marketing and property maintenance.
Attract and Retain the Best Tenants
Structuring your rental business as an LLC, marketing using videos, and enhancing your property can help you attract tenants. You can retain these tenants by being a responsible owner. If you need help organizing and staging your home in the Chicago area for rent, contact Lettuce Organize.