Converting primary residence to rental

[Koushik Saha]

Hello guys,

I have owned my house in Tampa since June 22 and now we are moving to our new house in the same area. We are planning to rent out our current house and have already found a tenant. Questions - 

1. My agent says that its not a good idea to notify the lender/bank about converting the primary to rental house. Could there be any issue if we don't notify the lender (or if we do)?

2. I need to change my home insurance policy from owner occupied to landlord policy. In that case, the insurance agent needs to list the lender name in the policy and potentially send them a copy? Is there a chance that the lender gets to know about this situation somehow?

I'm sure this is a pretty common situation for many of the investors in the community and would really appreciate guidance on the right course of action.

Thank you! 

[Raymond J. Rodrigues]

@Koushik Saha, as long as you lived in your previous house for 12 months, or so, then there's no reason why you cannot turn the property into an investment. Really though, you don't have to say much, if any, if you did, and all you need to do is change your insurance to a landlord policy.