To Sell or Rent? That is the Question
There are 10 Questions You Must Ask Yourself to Decided Whether to Sell or Rent
1. How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses)
2. Because of the economy, many homeowners cannot make their mortgage payment. What percentage of tenants do you think cannot afford to pay their rent?
3. Have you interviewed experienced eviction attorneys in case a challenge does arise?
4. Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
5. Will you allow pets? Cats? Dogs? How big a dog?
6. Repairs are part of being a landlord. Who will take tenant calls when necessary repairs come up?
7. Repairs are part of being a landlord. Who will take tenant calls when necessary repairs come up?
8. Do you have a list of craftspeople readily available to handle these repairs?
9. How often will you do a physical inspection of the property?
10. Will you alert your current neighbors that you are renting the house?
Keep in Mind…
Residential real estate is a great investment right now. However, if you have no desire to become an educated residential real estate investor, you may be getting in over your head. If you’re not ready to become or hire a landlord, you should think twice.
Renting residential real estate is historically a great investment, but it doesn’t come without challenges. It’s better to rent your home if you plan to become an investor that is aware of all the possible pitfalls.