Recent market conditions have yielded rents that are skyrocketing and homes that are still at great prices. This is causing some sellers to consider renting their home instead of selling it. After all, a homeowner can get great rental income now and perhaps wait until house values increase even further before selling.
Presido believes strongly that residential real estate is a great investment right now. However, if you have no experience as a landlord or investor in this sector, you may be headed for more trouble than you were looking for. Before renting your home make sure this is the right course of action for you and your family. Here are a few things to consider in making your decision.
- What happens if your tenant says they can’t afford to pay the rent this month because of more pressing obligations?
- How do you select a quality, long term, stable tenant for your property? How will you show the property? How do you write a lease?
- Have you interviewed a few experienced eviction attorneys in case a challenge does arise?
- Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
- What is your position on tenant having a pet? Dog or many dogs? Cats, salt water fish tank,6 ft boa constrictor?
- How will you actually collect the rent? By mail? In person?
- Who will take tenant calls when necessary repairs arise? Do you have a list of craftspeople readily available to handle these repairs?
- How often will you do a physical inspection of the property?
- Will you alert your current neighbors that you are renting the house?
As you can see, there are many issues(this is only a PARTIAL list) you must be prepared to address once you choose to rent your property. With careful planning and diligent effort, leasing your property can be rewarding. Again, renting out residential real estate historically is a great investment. Make sure you have decided to rent the house because you want to be an investor, not because you are hoping to get a few extra dollars by postponing a sale. And remember, Presidio Real Estate Services is always here to help you with these challenges, whether you’re looking to lease or sell.