I’m currently working with an amazing client—a professional woman who’s smart, hardworking, and ready to put down roots in Littleton. She sold her condo in Denver and is now on the hunt for a home where she can not only live but also rent out a few rooms to make things more affordable. If you’ve ever thought about buying a property to generate rental income, you might be wondering what to look for. Here are some tips to get you started!
Understand What Makes a Legal Bedroom
If you’re planning to rent out rooms, one of the first things to check is whether a space qualifies as a legal bedroom. This can vary slightly depending on local regulations, but the two must-haves are:
- A closet
- An egress window (a window large enough for someone to escape through in case of emergency).
Without these, you’re not looking at a legal bedroom, which could limit your ability to advertise it as such when renting. And with the average room in Littleton going for $888 per month this could cut into your profits.
Think About Layout
When renting out rooms, privacy is key. Ideally, the home will have a layout that allows renters to come and go without constantly crossing your living space. My client is hoping for separate entrances, but she’s also open to shared entries as long as renters don’t need to walk through her personal areas to get to their rooms. Think about how the space can work for both you and your tenants.
Location, Location, Location
In Littleton, proximity to amenities like restaurants, shops, and public transportation can make your rental more appealing to potential tenants. Homes near downtown Littleton or in neighborhoods with great walkability are often popular choices.
Consider the Extras
Small details can make a big difference when renting out rooms:
- Extra bathrooms: The more, the better. Nobody wants to fight over shower time in the morning!
- Shared spaces: A spacious living area or outdoor space can be a nice bonus for tenants.
- Parking: If you’re in a neighborhood where street parking is tight, having a driveway or designated parking spots can be a game-changer.
Run the Numbers
Before you buy, take a good look at the potential rental income versus your expenses. This includes the mortgage, property taxes, insurance, maintenance, and any utilities you’ll be covering. The goal is to ensure the rental income will help offset your costs, not add to them.
Know the Rules
Make sure to check local zoning laws and HOA rules. Some areas have restrictions on short-term or long-term rentals, so you’ll want to confirm what’s allowed before you buy.
Buy what you Want
Ultimately, if it’s a home you’re going to live in, you need to be happy with the purchase. Focusing too much on income generation could leave you with a property that doesn’t suit your needs in the long run. It’s perfectly okay to prioritize what’s most important to you as well.
Ready to Find Your Perfect Property?
If you’ve been dreaming about owning a home that also helps you build wealth, I’d love to help you make it happen. Whether you’re looking to rent out rooms, add an accessory dwelling unit (ADU), or find a duplex, I’m here to guide you every step of the way.
Send me a message or give me a call, and let’s find the perfect place for you!