How to Make A Home Into a Rental Property

Instead of selling your home, you can transform your old residence into a rental property.

Whether downsizing, relocating, or moving into a 55+ community, many active adults decide to move into a residence that better suits their lifestyle. For many homeowners, the question then becomes what to do with their current home. Although selling remains a common option, more and more active adults consider the benefits of transforming their home into a rental property.

Renting your home instead of selling your home offers several advantages. Primarily, those who rent their home retain ownership of the property. This means that they can return at any time in the future, leaving open the possibility of living in the house again. Renting your home also creates an opportunity for others to cover the mortgage payments through rental payments. For this reason, many homeowners consider rental properties as financial investments.

At first glance, renting out your home may seem intimidating and it may be difficult to determine where to start. However, this article summarizes some of the most important things to know about how to make a home into a rental property.

Property Management 101

A white attached home with a "For Rent" sign in the front yard
Consider whether you’ll manage the property yourself or if you’ll hire a property manager.

After deciding to transform your home into a rental property, the next big decision relates to who’ll manage the property. Early in the decision-making process, consider whether you’ll manage the property yourself or if you’ll hire a property manager. Both of these options have pros and cons depending on your individual lifestyle and long-term goals.

Some active adults may feel prepared to manage their rental property themselves. However, becoming a landlord means taking on a long list of tasks and responsibilities throughout the entire process. Those who manage their rental property themselves must be prepared to invest more time and take a more hands-on approach. Ask yourself whether you want to become a landlord and take on all the jobs associated with the role or whether you’d like to move forward with more leisure time.

A property manager is a person hired to manage and maintain a rental property on your behalf. Property managers often take care of tasks such as marketing the home, finding new tenants, screening rental applications, collecting rent, and handling repairs and requests. The property manager mediates the relationship between the tenant and the homeowner, which means less time and work for homeowners.

The convenience and expertise of a property manager does come at a cost. As a general estimate, property managers tend to charge about ten percent of the monthly rent as well as additional fees. The cost may be well worth it to active adults who want to take a more hands-off approach to their rental property while retaining their status as homeowners. Any active adults who want to move to a retirement destination, travel more, or simply enjoy more leisure time should seriously consider the benefits of working with a property manager. 

Prepare Your Home for Renters

A clean, attractive dining room in a modern home
Rental properties should be as appealing as possible to prospective renters.

Any homeowner should take several steps to prepare their home for renters. When homes become rental properties, the residence should also become as appealing as possible to prospective renters. While most homeowners will likely only need to make a few small changes, tenants often have high expectations for rental properties. 

At a minimum, the home should be thoroughly cleaned inside and out. Make sure all of the appliances function appropriately. Check that the home has working hot and cold water, heating and air conditioning, light fixtures, and power outlets. Everything in the home should be clean and in working order. 

Keep in mind that renters will have full occupancy of the home and will have access to anything in and around the residence. Make sure to remove any valuable or personal items from the home. Take family photographs and decorations off the walls so tenants can make the home their own. Homeowners may need to rent a storage unit, distribute items to family, or downsize in order to revitalize the home into a clean slate. 

Renovate and Remodel

A man working with a drill at a table with tools on it
Homeowners can take advantage of many cost- and time-efficient ways to improve their homes.

In addition to basic preparations for renters, active adults might consider doing some renovations or remodeling to make the home more appealing to prospective tenants. However, unless the home needs major repairs, these renovations will likely be small upgrades that have a big impact on renters’ perceptions of the home. Here are a couple of low-budget changes homeowners can make to spruce up their future rental homes.

Kitchen

The kitchen is a great place to start when homeowners are updating their space for prospective renters. A surprisingly effective way to make a kitchen instantly look more updated is to paint or re-stain the cabinets. Adding a new layer of paint to the cabinets can make a space feel fresh and will entice future tenants to imagine themselves spending time in the kitchen.

A new backsplash behind the sink or under hanging cabinets can also modernize a kitchen in an impactful way. Homeowners can skip the hard work of putting up backsplash the traditional way with grout by using peel-and stick-backsplash that can easily be changed out in the future. Additional kitchen improvements include replacing faucets with newer models, updating older appliances, and installing or refinishing countertops.

Bathroom

The bathroom represents another room with plenty of options for updates and customizations. The installation of a new vanity can significantly update and improve a space. If bathrooms have pedestal sinks, for example, consider replacing the sinks with vanities that offer counter space and under-the-sink storage. The peel-and-stick backsplash tile mentioned above can also add sophistication to bathrooms. To quickly update the shower, replace the current showerhead with a more modern and powerful model and add some hanging storage for tenants’ shower accessories.

Additional Appeal

Throughout the home, homeowners can choose among several cost-efficient updates that add appeal. For example, the installation of crown molding in many rooms can add style to any home. This surprisingly low-budget project can add depth to any space. A fresh coat of neutral paint on the walls can charm prospective renters and make a big difference in how they perceive the home.

Homeowners shouldn’t underestimate the importance of curb appeal. If your home doesn’t look good on the outside, renters might assume that the inside doesn’t look good either. Trim back overgrown bushes and add some fresh mulch and flowers to do wonders to the front of your home. Make sure to take care of any exterior areas that need additional maintenance.

Remember that you aren’t remodeling the home for yourself, but for prospective renters in the area. Because of this, you may not have to invest as much time or money as you might have to if you were selling your home. Homeowners can take advantage of many cost- and time-efficient ways to improve their homes. Remember that you don’t necessarily need to complete these renovations yourself. Instead, consider hiring someone to complete these tasks to give you more time to prepare your home in other ways.

Market Your Property

 data-lazy-src=

Can you spot the $207,744 difference between these identical homes?

Financing is the difference!

Get the details in The 62+ Loan Homebuyers Guide.

55places Mortgage is a joint venture between Mutual of Omaha Mortgage and 55places.com.
Details here.

Share this post:

We're here to help! (800) 928-2055

Call us to speak with a customer service representative.

Subscribe to Our Newsletter

Get Weekly Updates

I agree that 55places and its affiliates, partner providers or agents may call, text, or email me about my inquiry, which may be made with automated means. I understand that my consent is not a prerequisite for buying a property. I may revoke my consent at any time by contacting [email protected] Message/data rates may apply. I also agree to 55places.com’s Privacy Policy and Terms of Use.

The Best Places to Snowbird in 2021

We’ve gathered 25 of the best places for snowbirds, including cities in Florida, Arizona, California, Texas, South Carolina, and Nevada. For each entry, we’ve also provided a list of recommended 55+ communities in the area. If you’re ready to find your own winter retreat this season, here are some of the best places to consider.

A hand holding a red arrow pointing up with wood model homes in the background.

5 Reasons Not to Overprice Your Home

When selling a property, trying to get as much money as possible is a given. But, being aware of why you might be overpricing your home, and why it’s a bad idea, can be the difference between a deal and deadweight property.

Tiny, colorful model homes on stacks of coins.

Should Residents of 55+ Communities Pay Less Property Tax?

Active adults often have a particular budget in mind. In addition to the sticker price of a home, however, active adults may need to plan for other expenses, like utilities, repairs, and real estate taxes. Homeowners may start to wonder, “Do senior citizens pay property taxes?”

A mature woman smiling while sitting on the couch and using an app to help her sell her house.

Online Resources to Help Sell Your Home Fast

Selling your home can be difficult, especially if you’ve spent a lifetime raising your family and building memories within those walls. The process may be easier if you use some simple online resources to understand your home’s potential value and find professionals who can help you make your home look its best before it goes on the market.

A bag of money balancing on a seesaw with a wood house model.

10 Financial Benefits of Downsizing Your Home

Not only will downsizing relieve some of the stress of maintaining a larger home, but it will also provide some hefty financial benefits. Here are 10 ways downsizing your home can lead to an upsized bank account.

Inexpensive Ways to Boost Your Home Value Before Selling

Sellers want to get the best price for their home as this can have a significant impact on their budget for their next home. Luckily, there are lots of low- and no-cost ways to boost the value of your home. A bit of cleaning and sprucing up can pay serious dividends by the time you sign the papers on closing day.

A "For Sale By Owner" sign in front of a beautiful house.

Suburban vs. City Retirement: Which Is Right For You?

When it comes to choosing your ideal retirement location, you’ll probably be flooded with options. To pare it down, it’s important to weigh the options of retiring in a city or the suburbs. 55places is here to help.

About 55places

We’re changing the way people 55 and older are searching for their perfect next place. With a national network of hand-selected real estate experts, plus comprehensive information, unbiased content, and on-the-go insight about thousands of communities across the country, we’re a trusted resource paving the way from here to home. Whether you’re interested in a low-maintenance single-level residence, an active lifestyle or age-qualified community, an intimate enclave, or anything in between, we can help you make your next move the best one yet.

Scroll to Top