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If I Can’t Sell My Home, Should I Rent It Out?

Home and Dollar on compared - clipping path includedIt is well known that in most areas of the country renting is more expensive than buying a home. Homes remain affordable, while rent has risen sharply. This has caused some Raleigh area home sellers to consider renting their home out rather than selling it. It seems like a win; the homeowner gets rental income while they wait for home values to rise more.

In some instances, this is a sensible choice because residential real estate may be a good investment in the current climate. On the other hand, homeowners with no interest in becoming knowledgeable about this investment may be surprised by the logistics of property management.

Prior to renting your home, consider the following questions. They will help you determine whether it is a good decision.

BEFORE You Rent Your Home, Ask Yourself These 10 Questions:

  1. Your tenant says they cannot pay the rent this month because they need to spend the money on something else (holiday season, back-to-school, etc). How do you respond?
  2. Due to the downturn in the economy, a number of homeowners are unable to pay their mortgage each month. What do you think is the percentage of tenants that are not able to afford their rent?
  3. Do you have an eviction attorney lined up in the event an eviction is necessary?
  4. Have you contacted your homeowner’s insurance company to discuss any possible premium increases due to the greater liability of the home not being occupied by the owner?
  5. Will renters be allowed to have pets? What kind? How big?
  6. How will the rent be collected? Will the tenant mail it or bring it in person?
  7. How will inevitable repairs be handled?
  8. Will you be ready with a list of technicians when this repair is needed?
  9. How frequently will you visit the property for a physical inspection?
  10. Will you let your current neighbors know that the house is going to be rented?

Make An Informed Decision

While renting out your home has the potential to be a great decision, it is not without pitfalls. Be certain that you are renting out the property because you want to invest in residential real estate, and not because you want to make a little extra money by waiting to sell.

If you decide being a landlord isn’t for you, we can help you sell your Triangle area home for top dollar. Contact us, Linda Craft & Team, at 919-235-0007 to find out how we help home sellers every day.

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