When you own a rental property, you have the rare opportunity to own an asset that appreciates over time and has the potential to create a positive monthly cash flow for you immediately. But with the cost of property rising, people are searching for new ways to get involved in real estate. Cue the tiny home – small houses built on principles of minimalism built to be more cost-effective and environmentally friendly homesteads. If you plan to rent a tiny home, there are a few things to know. Here are three things to do before you rent out your tiny home.
Check Local Regulations
The first thing that you should do before renting out your tiny home is to check local regulations about renting a tiny home in your area. Every different area, state, and local municipality has building rules and restrictions, which might impact the legality of your tiny home as a rental. Make sure you have done your research and know the local regulations for tiny home rentals in your area. Otherwise, you could be unable to rent legally in your area and be stuck with an investment that simply does not make sense.
Look Into Prospective Tenants
Another important step to take before renting out your tiny home is to look into prospective tenants for your tiny home. As you begin showing tenants the property and getting applications you should start performing background and credit checks. Credit checks help you find better tenants that are more likely to pay rent on time. Background checks can also help you find people who have stable records and are more likely to be consistent and high-quality tenants. Having a bad tenant is worse than having a vacancy, so make sure you put effort into finding the right tenants right away.
Find a Property Manager
The final step to take before renting out your tiny home is to find a property manager. As the property owner, you are responsible for maintenance and repairs on the property. If you don’t want to be personally responsible for this, you should hire a property manager who will take that responsibility from you for a fee. This is the best way to make your rental properties as passive as possible and remove work from your plate to keep operating.
Renting out a unit or two is a brilliant way to increase your income. But if you plan to rent out a tiny home you have some extra steps. If you do these three things before renting your tiny home, you are ready for a successful rental endeavor.
Check out this article on essential items that will make your tiny home more comfortable year-round!