If the Fort Wayne property that you currently own (or are considering buying) has a mother-in-law suite included it can be a great way to earn some extra rental income. These units can help offset some of the cost of your monthly mortgage or provide you with some extra cash. Before rushing out to find a tenant, consider the following points to determine if renting the space is a good idea for you.
What Counts as a Secondary Unit?
A secondary unit is when there is a space in your Fort Wayne house or on your property that provides a separated livable space that could be rented out. This area includes common living space, as well as a kitchen and bathroom. While there are properties on the market that have these spaces as separate, but smaller, building on the same property as the main house, there are other options as well.
Many Fort Wayne homeowners are able to create a secondary unit in unused upstairs space or a finished basement. The remodels can be expensive, but the rental income can make the decision well worth it.
While a secondary unit can be nice when you have visitors, the main benefit that the space can offer is rental income. Rental income can help offset your current mortgage, or it can help you save money for other expenses.
One way to maximize the use of your rental income is by saving the funds as a future down payment. By using the funds for a future down payment you open up the possibility that you can purchase another Fort Wayne house to move into in the future. At that time you can begin renting the other portion of your first property.
Secondary units are nice features to have when you are selling your property as well. Real estate investors are attracted to listings that include these types of options as they provide multiple income producing possibilities.
What are the Disadvantages?
As soon as you being renting out your secondary unit you become a landlord. This might seem nice when you think about collecting rent checks, but it also means that you are responsible for maintenance and repairs that are necessary in the rental unit. You also lose some of your privacy as a homeowner as you bring someone else on to your property.
Finding a good tenant is not always easy. Even with proper background and referral checks you run the risk of having a bad tenant that will give you nothing buy headaches. If the rent checks are late and the tenant is loud and destructive to your Fort Wayne property, you might end up regretting your decision to become a landlord.
The idea of bringing in extra income from something that you already have on your property can seem hard to pass up. However, before jumping into becoming a landlord, carefully weigh the pros and cons mentioned above to see if it is a good fit for you and your Fort Wayne home.