One of the secrets to wealth is to make your assets work for you; these assets can be skilled employees, money in the stock market, and even real property that could be generating income while you aren’t using it. In a nutshell, this is why Airbnb, HomeAway, and other companies are succeeding. No investor makes an investment without doing a little research, and renting your house out temporarily should be no different. Here are some questions you need to answer before making your house work for you.
The first question you must answer prior to renting your home out is to figure out how many days per year you plan on renting your home; Los Angeles limits you to 120 days per year. Failure to abide by the rules regulating how many days you can rent your property will result in significant penalties.
The second question is whether or not there are additional restrictions on renting your home out. The fact of the matter is that neighbors tend to push back against people renting their properties out around them, and this typically results in local ordinances being passed. Los Angeles’ ordinances can be found here.
The 3rd question, if you have a HOA, is whether or not they allow you to rent your property in the first place. Some HOAs flat-out prohibit it, some have no rules on the issue, and some just require a minor background check before approval. As a general rule, you don’t want to upset your HOA.
The 4th question is how much work do you want to have to put in to obtain rental income. Some areas are full of Airbnb, and you’ll need to go the extra mile if you want to make your home into a money producing property. If there is hefty competition, you may need to provide additional provisions to make your home the place people want to be (flowers, stocked fridge, or other more creative experiences).
At the Chernov Team we understand that knowledge is power, and knowledge of how to make your assets work for you is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.