Turning current house into a rental as we move into a new house

[Dave Laird]

We brought a new house and want to turn our current home into a rental.

I'm in Seattle WA, where we have brought a house close by, and I have a heap of questions about setting up a rental property.

1. How should I set up accounting books for the rental property?

2. How do I set the best rental price for the house?

3. What are the common mistakes people make as they start as landlords?

I'm looking for some to point me in the right direction.

Thanks, heaps, for your help.

Cheers

Dave

[Jody Sperling]

0. Congratulations. Being an investor is a scary step, and one that, if done well, will lead you to financial freedom.

1. Don't overcomplicate it. Track receipts on excel. Keep all receipts.

2. Zillow is shockingly accurate on rental prices. If you narrow your search function to "Rent" on their website, you can see what properties in your area are going for. Avoid target pricing for properties that have been listed for 14 days or more. Aim high. If you have to remove your listing and relist lower, it will be okay.

3. The hardest part of being a landlord is finding good tenants. You can make every other mistake, and if you lease to the right tenants it will all be okay. You can make no mistakes but renting to the wrong tenants and all your work will be for nothing. Screen your tenants. Don't trust your gut. Get background checks. Call employers. Check credit scores. Tenants with good credit tend to be tenants who care for your property.