This thought may have crossed your mind: What happens if you find the job of a lifetime, but it’s in another state? What if your company transferred you? Should you sell or rent your home? There are quite a few factors to consider before making such an important decision.
Reasons to Keep Your Home
Think about some reasons for keeping the ownership of your home. Do you like the home enough to hold onto it in case you ever move back? Do you want a tax break through property depreciation? Do you want to use the home as a retirement investment?
All of these are good reasons for retaining your home ownership, but there are other factors to consider that could outweigh the benefits. For instance, are you ready to be a long-distance landlord? Hiring someone to maintain and manage the property for you? There are also many other costs involved, such as advertising, turning costs (cleaning and painting between tenants), taxes, insurances, utilities when your property is between tenants, etc. To properly assess these costs, you might want to research the numbers in your market. Expenses can run 30-40% of income before the Monthly Mortgage Cost.
The ABCs of Property Rental
If you decide to rent out your home, are you wondering where to start? First, make sure that you get the house into good shape in order to get thehighest possible rent. This includes not only the interior, but the exterior as well. Clean or replace the carpet, fix appliances, and whatever else might need fixing. Once that is done, set the proper rent.
Location is king when it comes to setting the prices. You can contact a property management company in order to research prices in the area, or you can ask a local realtor for some advice. Setting a price too high will likely result in a hard time finding a tenant.
Hiring a Property Management Company?
While hiring a property manager is not essential, it can make your life a little easier, especially if you are not moving out of the state. You should interview at least three companies, and be sure to ask about their experience, references, tenant screening, maintenance, eviction handling, insurance, and any special services they offer.