Having a rental property or vacation home is a fantastic way to generate passive income and supplement your other income streams. While the prospect of this investment opportunity is undoubtedly exciting, it comes with its own set of challenges that you may not have anticipated.
One of the biggest barriers between you and a successful rental property is understanding the necessary steps to transform your property into a thriving rental. This involves not only preparing the property for guests but also setting up efficient management systems, handling maintenance, and ensuring compliance with regulations. The key is to approach this transformation systematically—identify potential issues, implement effective solutions, and continuously refine your processes. By addressing these challenges proactively and leveraging the right tools and strategies, you can turn your property into a lucrative asset while minimizing stress and maximizing your returns.
The need to know
When converting your property, there are several things you must consider before making the switch. When renting, many guests and visitors will be flowing through your house which means more money for you but also more risk. No one wants their rental to go up in flames, but one way of protecting yourself and your guest is to let your insurance provider know your intentions for your property, and update your policy as recommended. If you are curious about what insurance to choose, one we recommend is Duuo. Duuo is a Canadian based “personalized insurance company” who specializes in Airbnb rentals. With flexible plans, you won’t have to stress about traditional insurance companies not covering everything you need. Updating your policy will ensure the future safety of your property.
On top of this, you must consider safety hazards that may produce a future problem for you and your guests. Are there any faulty outlets, maybe some exposed wires, perhaps? It is best that these issues are taken care of before rentals occur, so injuries don’t. In order to certify a safe and pleasant rental experience, schedule a contractor and an electrician to come in to make sure everything is up to code, this way you remove any guesswork about the safety of your rental property.
So you’ve updated your policy, and have made sure your property is safe and are now looking to rent. The next piece of the puzzle is to check with current local laws, and find out what conditions must be met in order to rent out your property. Do you have to apply for a rental license? Are you eligible for a rental license? These are all questions you will need to ask yourself in order to have a legal rental property. If you don’t know where to start, try asking around to other people that have short term rentals. If you’re unable, try looking for an online forum. BiggerPockets has a short term and vacation rental forum where you can ask questions about your property to others. The last thing you want is to go through the whole process of ensuring your rental is guest ready, and finding out you’ve missed a step. Making sure your property is up to code is a key part of your rental process as it protects you, your property, and your guest!
What’s next? Well, when you are ready to rent your property, you must think of the rules your guest must abide by. Do you care if they smoke or have pets? Or, how many guests they bring? You must detail these things in your rental description before renting, so the condition of your rental is left in the same condition as it was before the rental. Sometimes mistakes happen, but at the end of the day it is your property, make sure proper fines are in place in case your guest doesn’t listen.
Things to think about when transforming your property
If (only) life was perfect, you wouldn’t have to worry about damage to property or anything insidious. But as that’s not the case, you as a property owner have to be aware of the possible things that can go wrong when renting. A broken piece of furniture, some scrapes or scratches on a wall are the least of your worries. Many Airbnb rentals have been subject to quite drastic damage when renting to those that host parties. A rental in Calgary, AB Canada was faced with upwards of $50,000 worth of damage! Let’s make sure that doesn’t happen to you. Certain smart services such as NoiseAware and Minut can alert you and your guests if they are being too loud, and this could be the warning that saves your rental.
Another issue you may encounter is the cleanliness of your property. No property owner appreciates a guest that has recently rented their property and left it in total disarray. Considering it’s now your responsibility to clean up the rental property for your next guest, it can become a hassle. During these uncertain times with COVID-19, cleanliness has only become more paramount. To counteract this issue, hiring a cleaning service ensures that your property is clean and ready to go for the next guest.
You may notice your life get busier and a little more chaotic when you are renting out your property. Choosing the right property management service can help you ease your mind and save you time! If you want to learn more about choosing a PMS, click this link to head to one of our previous articles discussing how to choose the right one for you. Renting a property doesn’t have to be hard, and at Enso Connect we are here to help.
