Wednesday, November 17, 2010

tips for turning your 1st time home into an income property #leduc

If you’re in a position where you may want to consider turning part of your home into an income property, this article is for you!

  1. Make sure it's worth it
    the cost of renovations has to be able to pay itself back within two years rent. Scout out local markets, get a professional opinion.
  2. Tag team, if you can
    To use a cliché, two heads are better than one, and home-owning is no exception. Getting to your desired final product is a journey, and having a teammate to share frustrations, anxieties and most importantly, costs with is invaluable.
  3. Whatever you budget, add 25 per cent
    When renovating your space, despite what a professionally quoted budget says, add 25 per cent, just in case. If you don't go over, nothing lost. But if you do, at least you were expecting it.
  4. Houses are like onions
    The more layers you peel back, especially while demolishing, the more problems you're going to find. Count on hidden gems like mould, live wires and any other hidden costs, just in case.
  5. Make sure the space is livable
    If the kitchen has zero counter space and the bedroom can only fit a bed, not only is it going to be hard to find someone to rent out your unit, but think of the types of people who might be wanting to rent out your unit.
  6. Don't skimp on the drywall, especially on the ceiling
    Not only do you want a fire barrier between you and your new housemates, you might be thankful for a little bit of sound-proofing in the long run.
  7. Start on the outside
    A separate entrance is key when renting out a basement, especially if you don't want to mingle too much with your new lessees. And you might want to make sure there are no potential lawsuits hanging around — such as slippery stairs or rotting wood.

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