New to being a landlord

[Account Closed]

Hey! So we are new to being landlords. We have people renting our home but I’m not sure how to go about telling our Mortgage company that we have people renting. How do I switch it from a personal to a rental? Am I going to be in trouble for not notifying them first? This is our first rental ever.

[Randall Alan]

The mortgage company won't really care as long as they keep getting their mortgage payments.  You CAN change your insurance from homeowners to "dwelling" which removes the personal content coverage and save some money (it's on the renter to insure their personal property).  

Who DOES care is your taxing authority if you are getting a homestead exemption.  You should let them know... because they will figure it out by cross referencing where you live now against where the homestead exemption is, and they will go after you for any savings you got that you shouldn't have.  On the down side, this will definitely increase your taxes on the property... but hopefully if you own a new house, you will just move your homestead exemption to that one and save there.

As for your mortgage company, they still have you on the line for the note / mortgage, and as long as you don't give them a reason to come after you (ie. quit paying your mortgage) you will never hear from them about your property being a rental. 

Randy