I am turning my condo into a rental property. Besides the obvious repairs, what else should be done?
I have been told that registering as a business can help me buy the things I need wholesale, open business bank accounts, etc. I want to go about this the right way, but I also want to keep things fairly simple. I’ve already started doing my research regarding the market…but I still need advice from the experienced.
No you would get any discounts by registering as a business. To get any type of discount you need a sellers re-sell permit. You don’t need to incorporate, and you don’t need a business bank account since you are the sole owner, without partners.
My city does require that the landlord get a yearly business license for every house, condo, mobile home, or unit rented out. Check with your city or county.
Also remember that at least 51% of the Condo project must me owner-occupied to qualify for any FHA loan. If the project exceeds 49% of non-owner-occupied it seriously hunts the value of the project because most people purchase condos with FHA loans due to the low required down payment.
Start small and uncomplicated. Make sure association permits rentals and do they need to approve tenants. Biggest issue is getting reliable tenants. See http://mrlandlord.com for pointers and practical help.
References :
No you would get any discounts by registering as a business. To get any type of discount you need a sellers re-sell permit. You don’t need to incorporate, and you don’t need a business bank account since you are the sole owner, without partners.
My city does require that the landlord get a yearly business license for every house, condo, mobile home, or unit rented out. Check with your city or county.
Also remember that at least 51% of the Condo project must me owner-occupied to qualify for any FHA loan. If the project exceeds 49% of non-owner-occupied it seriously hunts the value of the project because most people purchase condos with FHA loans due to the low required down payment.
References :
You need to change your homeowner’s policy to commercial. You need permission from the HOA to rent the unit.
References :
Dear Rental Property Owner,
The good news is, that it doesn’t take a rocket scientist to be a landlord.
Since your rental property is going to be an LLC, you will def. get benefits from renting your property out Make sure to speak with your accountant, and he will advise you the best way to go about renting your property out
Also, you want to create a check list of everything you currently have in your house.
addition to your obligation to yourself to keep the business afloat, your landlord responsibilities include:
Providing a safe, smoothly functioning home for your tenants. That means, for example, making sure plumbing, wiring and appliances function, outdoor areas and stairways are safe. It means quickly responding to a tenant’s report of the inevitable malfunction or problem.
References :
Jennifer Sommers
Keller WIlliams Realty
Homes For Sale in East Boca Raton
http://www.AgentBoca.com