How To Convert An Old Home Into An Investment Property
If you have an old home and you don’t know what to do with it, why not convert it into an investment property instead?
There are numerous ways on how to convert your old home into a cash cow. All you have to do is to think of the best possible ideas that you may apply to the current state of your home. If you want to get more from your old home, renovating it or improving some parts may also make a huge difference to your return on investment (ROI).
If you don’t know where to get started on how to convert your old home into an investment property, here are some options you can consider:
Turn It Into A Rental Property
One of the ways to make your old home into an investment property is to use it as a rental. Many people are looking for rental properties these days, and depending on your home’s condition, you may consider some home improvements in order to ask for the highest possible rental fee.
With this scenario, you can get an extra monthly income as long as you have good tenants. Working with property management companies like rooftoprentals.net can also help for the best return on your money.
To convert your old home into a rental property, there are several things to consider:
1. Permits – Requirements for rental properties may differ by locality, but a permit is always necessary. The purpose of permits is safety-oriented.
Oftentimes, inspectors from the government will inspect your old home for safety hazards such as adequate exits, heating, electrical, and some health concerns. Fortunately, such permits are inexpensive.
2. Insurance – Even if you already have homeowner’s insurance, it’s not enough if your house serves as a rental property. Once you have people on your property, you are responsible for their safety.
Therefore, having a homeowner’s insurance policy for the renters can come in handy as it may include reimbursement for any rental income you’ve lost due to required extensive repairs.
3. Upgrades And Repairs – Aside from the basic requirements, take note that anything you upgrade or repair adds value to the home. It also makes it appealing to those who compare rental properties to others. See to it that your property is freshly painted, clean, and affordable.
4. Rental Fee – Determine what you’d like to get for your monthly profits. Never forget to add into your costs the premiums for repairs or upgrades you made.
Once you’ve come up with the rental rate, check the rate of other rental properties. This will help you understand on how competitive your rate would be to others.
5. List It As A Rental Property – To find tenants for your property, you need to list it as a rental property. This way, you’ll get exposure while promoting it to your target audience.
Make It A Beautiful Venue Or Reception
All venues need to be spacious, picturesque, and smart. This may often require a significant investment to meet the needs of the regulators and renters.
If your old home features a big entrance hall and a beautiful staircase, don’t waste its beauty. Improve its overall look instead. Convert it into a magnificent reception or venue. This can be a profitable home conversion, especially if you have a big parking space. The only thing you need is a slight makeover to achieve a stunning look for your old home.
You don’t need to change everything in your old home for it to be grand. More often than not, many people searching for venues and receptions prefer something simple but attractive.
Whether your old home is small or big, your personality or preferences plays an important part in converting your property into a venue. For ideas, you can check out online or ask experts like interior designers to help you.
Once your old home is ready to accommodate guests, list it with online venue directories. Don’t forget about marketing it to attract potential clients who may rent your place, too.
Convert It Into A Storage Space
If you don’t have plans of living in your old home and you have available space, you may want to rent it out as a storage area. This is another way to provide a steady, monthly income.
Some people have things they like to protect from the harsh elements of weather, yet don’t have enough space to keep in their own homes. For this reason, they look for a year-round storage option.
Letting somebody else store their items in your old home may bring in a substantial income every month. Remember that storage units are high in demand these days and having an old home with a lot of available space can be a perfect storage space for others in need.
Just like with a rental property, you need to advertise your old home as a storage space for rent. Make sure to highlight your property’s special features, like good ventilation, so it will stand out in the market.
Run A Bed And Breakfast
If the rooms of your old home are still fully furnished and packed with furniture and beddings, you can maximize your income by running a bed and breakfast. Renting out the rooms in your old home for a few days or weeks can be more lucrative than renting your entire home to a certain tenant.
However, you have to take note that running a bed and breakfast can be challenging, especially if you don’t have an idea on how to operate one. To know the basics for you to get started, it’s important to do your research. There are many steps and procedures to adhere to before you finalize converting your old home into this kind of accommodation.
Convert It Into A Home Office Space
For many startup businesses that like to reduce their risk, a home office space may be a great solution. If you’re planning to launch your own business, don’t look for a rental office space. Convert your old home into your own office space.
Working and living in the same building can be convenient and economical. Converting your home into a home office space, however, may be complicated as you might need to work with professionals, like architects, for any necessary changes.
You also need to talk with zoning and building officials to know if your property is zoned for commercial use or if your old home is safe to be used as an office space.
Before you convert your old home into an office space, make sure to consider the following:
· Zoning – One of the first things you should do is to check the zoning of your property, which is basically covered by your state’s zoning ordinance. A zoning ordinance protects the property and people from harm due to incompatible use.
When it comes to zoning ordinances, it may include various things such as the property’s size and its lot coverage, adjacency to dissimilar uses, and proximity to the property lines. It may also provide guidelines for shielding any unattractive elements from neighbors, including mechanical systems, bright exterior lights, and so on.
· Building Code – A commercial building code is primarily focused on the property’s structural adequacy, fire safety, and accessibility. These are aspects for which your architect may provide tips and evaluate. Architects will also consider the proficiency of mechanical, electrical, and plumbing systems.
Let Advertising Agencies Film Commercials In Your Old Home
If your old home is still visually appealing, you may earn an extra income from it by converting your property into a perfect place for advertising agencies to film commercials.
You can rent your place to commercial producers. The best thing about this is that it doesn’t matter where you reside or whether your property is lavish or huge. Most advertising agencies will pick modest properties for their commercials.
You may start earning by listing your property on an online directory that producers typically use when looking for places to film. By allowing producers to rent your place, you may get several bookings in a month. However, just because it may generate more income doesn’t necessarily mean it may be that reliable.
Just make sure to provide your place with proper care and maintenance, so it will stay appealing to your prospects.
Consider Renovating Your Home And Selling It At A Higher Price
Your old home is still an investment and if you want to maximize its value, you might want to consider home improvement projects to sell your property at a higher price.
Some of the improvements you can do for your old home may involve:
· Landscaping – Your home’s exterior gives your buyers its first impression. An overgrown or patchy yard may turn their sights somewhere else. Anything that’s already withered and/or dead must be removed. You should also cut back anything that’s overgrown.
To ensure that your lawn is green and refreshed, consider planting new grass seeds and touch up the edging to define spaces. In addition, fresh straw or mulch in any beds may also be necessary.
· Painting – This is a low-cost improvement with high ROI, so it isn’t surprising why most homeowners would prefer to paint. When you’re planning to sell your old home, a good coat of neutral paint may provide your home a necessary facelift. This is profitable, because most buyers actually prefer seeing a fresh blank canvas.
You may also consider getting recommendations from experts. If you don’t know which paint colors are ideal for your home’s features like cabinets and flooring, an expert can truly help. If you want settle with a safe color, gray is a popular choice in today’s home improvement trends in terms of paint colors.
· Lighting Fixtures – Since your home is old, most of its lighting fixtures might not be working. If you want to boost your property’s value, you will probably need to make a simple update by replacing your lighting fixtures. Because appearance matters, this upgrade can make a big impact to potential buyers.
As you search for options such as ceiling copper, pendant lighting, oiled bronze, and chandeliers, take note to keep the colors consistent with the hardware of your house. For instance, you may mix metals like oiled bronze and copper or brushed nickel, but don’t combine silver and gold tones.
Remember that old brass fixtures may look dated since they’re often used in properties built in the ‘80s and ‘90s. In short, if you want to install something new, ensure that it would offer a real update to your outdated home.
· Flooring – Repairing flooring or replacing carpets are also improvements that most homeowners make. If you have lots of rooms with different types of flooring, you might like to invest in new flooring to give your house a seamless feel. Faux-wood floors or wood floors are ideal for upgrading purposes, even if such options may be costly. However, if you can’t upgrade to wood because of the cost, it’s also a major selling point to consider a new carpet. Just choose those with neutral colors.
Start A Small Homestead
As more and more people search for ways to lessen their commercial consumption by purchasing and eating locally produced food and goods, micro-farming and urban homesteading are becoming a money-making and money-saving trend for homeowners. For this reason, you might want to convert your old home into a small homestead.
With a lot of people willing to share their successes, tricks, and trials online, it’s easy to find some useful homestead business ideas you may need to get started. To make money with your old home as a small homestead, begin with having an herb garden for organic ingredients.
You may also have a succulent garden in your home. The best thing about this is that it requires minimal maintenance, and buds can be harvested to make more mini gardens of succulents. Once you have many pre-potted succulents, you can offer them at your property or sell them online. If you know some local retailers looking for suppliers of succulents, you may sign a contract with them as a supplier.
Final Thoughts
You don’t need grand renovations or huge home improvement projects to make your old home a money-making property. All that’s required are a few changes depending on what you want to do with it. Whether you want to convert your house into a rental property or a small homestead, you can be assured that your old home won’t be wasted if you give it the chance to earn a passive income.
