How Do I Rent out my home?

Legal Q&ACategory: Real EstateHow Do I Rent out my home?
Reader asked 5 years ago

I currently own a house which I have a mortgage on. The house is my primary residence. I am looking at buying a second home and making the current one a rental property. My questions are – 1) Do I need to inform my mortgage company of this change? If so, how will it affect my mortgage? 2) I have a PMI on the property as well, will this be affected? 3) are there any codes requirements that I will have to address before renting this home out? 4) How will this affect my required home owner’s insurance?

I am located in Texas and already have a tenant willing to move in to the house. Can I just treat this as a landlord situation or do I need to re-file everything?

1 Answers
Dave Alden answered 4 years ago

It isn’t at all uncommon for a homeowner to change their residence to income (investment) real estate. From a practical standpoint, owners continue to pay their mortgages, just as they did while residing in the property. As long as you’ve lived in the property for some time before converting its use, you shouldn’t have a problem with your lender. You can read the note and mortgage, and related loan papers, to check for any restrictions. The only people I’m aware of who have gotten into any trouble, are those who purchased multiple properties saying that they intended to be owner residents of all of them.
For guidance on all the laws that apply to landlords, you can purchase a book like Every Landlord’s Legal Guide – National Edition (click here for Landlord-Tenant titles). You can also find a lot of information using’s Legal Research tool – search “texas landlord”.
Your question about insurance is a good one, often overlooked. It would be a good idea for you to discuss your renting the house with your insurance agent, who can advise you about the insurance products available to protect you in the event of loss and from liability. It may be that a rider can be added to your existing homeowner policy, to provide additional coverage for you as a landlord. I additionally put a clause in all my rental and lease agreements, to say that the tenant is responsible for getting their own coverage for their belongings, e.g., renter’s insurance.
Good luck!
— Dave
Alden Law Group
Aviation & Business
Sacramento, CA
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