top of page

Sweeney Sells Real Estate Blog

Search

How to Turn Your Home into a Rental: Step-by-Step


Turning your current home into a rental property can be a smart wealth-building move, especially in growing markets like Sacramento. Whether you’re upgrading to a new home or want to earn passive income, renting out your home involves more than just finding a tenant.


Here’s a step-by-step guide to help you do it right.


🧠 Step 1: Understand the Financial Implications

Before converting your home to a rental, crunch the numbers:

  • Can the rent cover your mortgage, taxes, insurance, and upkeep?

  • Will you need landlord insurance instead of homeowner’s insurance?

  • Are you prepared for vacancy periods, repairs, or unexpected costs?


Also consider tax implications. Rental income is taxable, but you may gain deductions for mortgage interest, depreciation, repairs, and more. A talk with a tax professional is highly recommended.


📜 Step 2: Check HOA Rules and Local Laws

Your HOA may have rules against renting or require approval. In Sacramento, some neighborhoods are subject to local rental ordinances and inspection programs. Make sure:

  • The home complies with local rental housing codes.

  • You obtain a business license or rental permit (if required).

  • You’re aware of tenant rights and fair housing laws.


🧹 Step 3: Prep the Property for Renters

Treat this like prepping to sell—because first impressions matter. Key upgrades may include:

  • Deep cleaning and fresh paint

  • Fixing deferred maintenance (leaky faucets, broken blinds, etc.)

  • Safety checks: smoke detectors, carbon monoxide alarms, secure locks

  • Curb appeal updates like landscaping and power washing


Also consider upgrades like durable flooring and energy-efficient appliances to attract better tenants and reduce long-term costs.


💵 Step 4: Set the Right Rent Price

Look at comparable rentals in your neighborhood to find a competitive rate. Overpricing can lead to long vacancies, while underpricing leaves money on the table.

You can:

  • Use rental estimate tools

  • Work with a local property manager or Realtor® for pricing guidance


Factor in if you’ll include utilities or yard maintenance in the rent.


📸 Step 5: Market the Property

Create a professional listing with:

  • High-quality photos

  • A clear, appealing description

  • A list of amenities and neighborhood highlights

Post to sites like Zillow, Apartments.com, Facebook Marketplace, and local rental groups.


Respond quickly to inquiries—good tenants don’t wait around!


🕵️ Step 6: Screen Tenants Carefully

Screening is critical to avoid costly issues. Be sure to:

  • Require a rental application

  • Run credit, background, and eviction checks

  • Verify income and employment

  • Contact past landlords for references

Also, establish clear criteria in writing to remain compliant with fair housing laws.


📝 Step 7: Create a Strong Lease Agreement

Your lease should cover:

  • Rent amount, due dates, and grace periods

  • Security deposit terms

  • Rules on pets, smoking, guests, and maintenance

  • Notice periods for ending the lease or raising rent


Have an attorney or property manager review your lease to ensure it complies with California landlord-tenant laws.


🧰 Step 8: Set Up Systems for Management

Decide how hands-on you want to be:

  • Will you self-manage or hire a property management company?

  • How will you handle rent collection and maintenance requests?

  • Will you use software like Buildium, AppFolio, or RentRedi?


Professional management can free up your time and reduce legal risks, especially if you live far from the rental.


✅ Final Thoughts:

Turning your home into a rental can be a rewarding way to build wealth and generate passive income—but it requires thoughtful planning and legal compliance. If you’re in the Sacramento area and considering this move, consult with a local property manager or Realtor® who can guide you every step of the way.


Your NorCal Realtor

M&M Real Estate

BRE Lic# 01938720

Cell: Call/Text 707-330-2324


About Scott Sweeney


SweeneySells

Full Time Realtor 13 Years +

Over 100 Families Served

Top 5% Producing Agent

Buying & Listing Specialist

Contract & Negotiation Ninja

CSUS Business & Marketing Graduate 2006


With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.


Reach out to SweeneySells today, and take the first step towards your real estate goals!

📞707-330-2324




Top Producer 2016-2023


"I appreciate your business & referrals!"


Hours Mon-Fri 9am-6pm

Sat By Appointment

Sun Off


Schedule a call or zoom with us here! 👇




 
 
 

Bình luận

bottom of page