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Converting your Property into a Rental Home in Sacramento after Purchasing it!

What should you consider when renting out your home after purchasing it?

When you purchase a home and decide to rent it out, there are several things that you should be aware of. Some of these items include:

1. Mortgage: Most mortgage lenders will require that you occupy the home for a certain period of time before you are allowed to rent it out. This period of time is usually one year, but it can vary depending on the lender. If you violate this restriction, your lender may have the right to call the loan due in full.

2. Homeowner association: If your home is located in a neighborhood with a homeowner association (HOA), there may be restrictions on renting out your property. The HOA may require that you obtain approval before renting out your home, and there may be limits on the number of renters or the length of time they can stay.

3. Insurance: Your homeowner's insurance policy may also have restrictions on renting out your home. Some policies may require that you purchase additional coverage for rental properties, and others may exclude coverage altogether.

4. Local regulations: In some areas, there may be local regulations that restrict or limit the renting of homes. These regulations can include zoning laws, building codes, and licensing requirements.

5. Tax implications: Renting out your home can also have tax implications. You may be required to pay taxes on rental income, and there may be deductions that you can take for expenses related to your rental property.

In conclusion, if you are considering renting out your home after purchasing it with a loan, it is important to be aware of the restrictions that may apply. These can include mortgage, homeowner association, insurance, local regulations, and tax implications. Make sure to do your research and consult with a professional before making any decisions.

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