Should You Rent Your Home?
What if you find a great job in another state...or... Suppose you are ready to upsize (or downsize) from your current home but you don't have to sell it in order to purchase a new home. Do you sell or rent your home?
Think about reasons for maintaining ownership. Do you want to keep the home in case you ever move back? Are you looking for a tax break through property depreciation? Do you want the home as a retirement investment? On the other hand, are you prepared to be a long-distance landlord? There are other costs involved as well, often running 30-40% of income before the monthly mortgage cost.
If you decide to rent the home, where do you start? Get the house in shape, including interior and exterior painting and patching, carpet cleaning, appliance tune-up, ensuring adequate insulation, and fixing what needs fixing. A property management company or knowledgeable Realtor can research prices in your area.
It’s not essential to hire a property manager, but it can make life easier, especially if you are going to move out of the area. Be sure to interview 2 or 3 companies. Ask about accreditation, customer service, references, screening, experience, vacancy rates, maintenance, monthly reporting, handling evictions, insurance, fee structure, dealing with prospective buyers, inspection of the property, and any special services.
If you find yourself in this situation, give me a call. We can look at your options so you feel you are making a very informed decision.