Imagine if your home helped to pay for itself by generating extra cash flow. Pyramid Home Remodeling wants you to know that this can easily happen if you have dedicated space to rent. Anything from a single bedroom to a full living suite can help with your monthly mortgage payment. Even if you have to add the space with a home addition, it’s worth it in the long run.
The financial experts at Capital Direct address this in the following article:
Of course, you might have to renovate to create the basement suite, but it’s worth it. In addition to the benefit above, homes that produce rental income are very attractive on the market because they allow the buyer to take on a larger mortgage. Mortgage companies recognize this as well, and will often reduce the amount of the required down payment on the mortgage as well. Continue reading at Capital Direct
When planning an addition, some homeowners will prefer to build outward from their existing floorplan, while others will choose to build up by adding another floor. In other situations, a separate guest house or apartment above a free-standing garage will be preferable. The experienced and professional staff at Pyramid Home Remodeling will be happy to help you decide what works best for your existing home and budget.
College Kids Staying Put?
With tuition costs continually on the rise, many families are seeking alternatives to out-of-state schools and on-campus housing. Some are opting to build a secondary suite onto their home for their kids in college. They may collect no or reduced rent for the duration of schooling with the intention of renting to tenants at full market value afterward. When parents charge their children rent, they often place some or all of the money received into a separate bank account to help them with a future down payment on their own home. With extra space comes extra options.
A Place for Elderly Family
Incorporating an extra kitchen, bathroom and bedroom can serve as a permanent and private living suite for elderly parents or other family member. Enjoy the peace of mind that comes from having your older loved ones close by while maintaining separate living spaces. Additional renovation projects can include adding mobility ramps, special height countertops for the kitchen and bathroom, and hand rails to make using the bathroom safer.
Regardless of who you decide to rent your space to, you need to be sure that your interests as the homeowner are protected. To help with that, check out this piece about rental agreements from legal website Nolo:
Prepare a Legal Written Lease or Rental Agreement
The rental agreement or lease that you and your tenant sign sets out the contractual basis of your relationship with the tenant, and is full of crucial business details, such as how long the tenant can occupy the rental and the amount of the rent. Taken together with federal, state, and local landlord-tenant laws, your lease or rental agreement sets out all the legal rules you and your tenant must follow.
Problems arise when landlords include illegal clauses in the lease, such as a waiver of landlord responsibility to keep premises habitable, or when landlords fail to make legally required disclosures (discussed in the next section). And even if it’s not required that you cover a particular issue in your lease, such as how when and how you can enter rental property, you can avoid all kinds of disputes by using an effective and legal lease and rental agreement that clearly informs tenants of their responsibilities and rights. More details at Nolo
Additional factors to consider for your rental suite can be found in this informative newspaper article:
Tell your home insurance company.
When you rent out a unit in your home, you are obliged to inform your home insurance company – something that the vast majority of people fail to do. If anything were to happen, for instance if a fire starts in the rental suite, the insurance company could say they were not informed of the tenant and that the policy is voided.Research the tax repercussions.
Once you have a rental suite in your home, you have to claim that rental income on your tax return. In addition, once you start using the property for revenue, a portion of the capital gain when selling the property could be deemed taxable. See more at The Globe and Mail
Pyramid Home Remodeling: Your Home Addition Specialists
Pyramid Home Remodeling offers everything from home renovations to additions to full custom home constructions. We have proudly operated in Charlotte since 2001, completing projects large and small in all of the city’s top neighborhoods. If you are considering any type of upgrade to your home, we should be your choice. Contact us today for a free price quote and let’s get started. Call 704-750-8151 or use the contact form on the website and we’ll get in touch with you.
Add a Home Rental Space to Create Income and Peace of Mind posted first on http://pyramidhomeremodeling.com
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