There are times when a homeowner is ready to move, and they don't have to sell their current home in order to buy a new home. In most circumstances homeowners sell their current home rather than keep the home and use it as a rental. However, the thought inevitably crosses the minds of some homeowners.... Should I rent out my current home?We have been asked this question many, many times. Ultimately that decision is up to a homeowner. However, when we are asked... we do offer up some "food for thought" questions a homeowner needs to consider well before putting a "For Rent" sign in the yard!
First and foremost ask yourself this:
DO I WANT TO BE A LANDLORD?
- Do I want to be bothered at midnight on Christmas Eve (or any other night/day for that matter) when my rental property has a hot water heater leak, or the furnace goes out?
- Will the renter care for the home the way I would care for my home?
- Does my neighborhood Homeowners Association allow my home to be used as a rental?
- Does it make sense financially for me to rent out my home?
- How does this affect my property taxes and exemptions?
- How will this affect my insurance rates?
- If a renter stops paying rent, there is an eviction process and do I want to incur that expense?
- How will an empty house with no renter and no rental income flowing affect my financial bottom line?
- Should I hire a Property Manager? (an additional cost that would need to be figured into rent price)
The point we think is the most important at the end of the day...
ONE BAD RENTER CAN COST YOU A LOT OF MONEY!
Sure it sounds good... income coming in each month. But when that renter moves out... what will the condition of the home be like? Will the carpet need replacing? Did they damage walls? Did they have a pet, even if it was not authorized? Will that security deposit cover costly, big repairs due to damage at the hands of a renter?
Renting your home is like running a business. It's much more than finding a renter and collecting rent each month.
