Have you been thinking of owning rental property in Idaho? There are many reasons that people choose to become owners of rental properties. Some people want extra income to save money or pay down debt. Others also enjoy possible tax advantages that come with rental income. Homes appreciate in time, and holding ownership and renting is an excellent option for those that know what they are doing. If you are new to owning rental property we suggest you seek guidance and use property managers such as us to help.
There are different types of residential homes to invest in, such as single-family home, condo, or a townhome. The option is yours, especially in Idaho. Moneyinc.com shared an article on top places to live in Idaho that you can check out, and Boise was named top places to live in 2019 by Livability. But what should you know about owning a rental property before you buy? Here are three (3) things you should consider when owning a rental property that we hope you find helpful.
Do your research on location.
Before you purchase a home with the intention to rent it, make sure you do plenty of research. A couple of things you want to look into are if the property has the potential to generate income. Or, for that matter, be highly rentable. Take into consideration to look at the neighborhood, the current market for rentals. You also want to consider the age of the home as well. Consider doing a thorough evaluation of the property in question first before you buy.
Set aside money for expenses.
Old homes aren’t the only homes that might require you to invest in more than just the mortgage. Depending on your research, like we talked about above, there will always be things that might come up that would be the owner’s responsibility. Some may come at the beginning of your investment. Simple repairs or upgrades like paint, new carpet, or new landscaping can help make your property easier to rent and increase property value.
Understand the landlord-renter rights/laws.
Owning a rental property is different, and guidelines can change from state to state. There are laws you should be aware of and understand when becoming a landlord in Idaho. Make sure if you know them and follow them if you are renting out on your own. Working with a property manager like RentWise Property Management can help alleviate any additional time and stress you might have when it comes to this. Consider allowing someone to manage your property if you are new or looking for a little more of a turn-key experience.
These are just a couple of the things we find a lot of first-time homeowners find themselves asking. We find that many potential landlords spend time researching and trying to understand the opportunities behind owning a rental property. If there are questions we can answer, we would love the opportunity to help you in your decision-making and answer any questions that might make you feel uneasy about purchasing and managing an investment property. Contact us today at (208) 949-3083.