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Answers (12)
- Simon Margulius, "ezownhomes"
- Contributions:9
renting out a home is an alternative.
the person renting the home should have good credit,
a minimum downpayment of 10%
rent cost should not exceed 34% of renters gross income
renters should have renters insurance, with you as the payee.
good luck!
the person renting the home should have good credit,
a minimum downpayment of 10%
rent cost should not exceed 34% of renters gross income
renters should have renters insurance, with you as the payee.
good luck!
- David DePasquale, "Depodepo"
- Contributions:3
It will make your home much harder to show and there is no guarantee what condition it will be in for a showing. In most cases you will have to give the tenant 24 hours notice as well.
- Jackie Leonhard, "Jackie Leonhard"
- Contributions:23
It should be your last option. You will need to know all the rules about being a landlord. Some renters know how to work the system and they will know every rule in the book. You should be in the same area so you can do inspections. If it is a nicer home and you have a the rent at a higher price you might get a more reliable renter that if you have it lower. Check the rental market in your area.
- Malinda Trimberger, "malindat"
- Contributions:81
It depends on what kind of mortgage you have on your home. If you have an FHA, WHEDA or other government loan ~ its states right on your loan papers that your home is to be owner-occupied. If you rent it out and change your mailing address ~ this will red flag the lender and they can actually call your mortgage due. They are scrutinizing this very closely, as your not the only one considering renting out your home during current market conditions. You should read through your loan documents or check with your lender to verify that you are able to rent out your home.
- Susie Jennings, "SusieStages"
- Contributions:8
If you are losing money and not able to move on it would be a good consideration. If you still plan on selling the house you need to arrange a month to month rental and have a really good agreement with the renters. A really good screening of the renters in this case is very important. They need to agree to keep the house spotless and in excellent showing condition. They also need to be very flexible in allowing showings. Sometimes renters are a real hinderance to selling a home.
The upside to renting is that it is difficult and expensive to insure a vacant house and an empty house does not show as well. You can find people who will rent and stage a home until it sells and then they move on. Most of these people have pretty neutral furniture and are used to showing the homes. Renting while you are selling is a good way to pay your holding costs. You need to charge enough rent to cover those or at least cover enough that you aren't going in the hole.
Good luck.
The upside to renting is that it is difficult and expensive to insure a vacant house and an empty house does not show as well. You can find people who will rent and stage a home until it sells and then they move on. Most of these people have pretty neutral furniture and are used to showing the homes. Renting while you are selling is a good way to pay your holding costs. You need to charge enough rent to cover those or at least cover enough that you aren't going in the hole.
Good luck.
- Kevin Kieffer, "Kevin Kieffer"
- Contributions:162
It is a great idea if the rent exceeds your mortgage payment+taxes+insurance. If that is the case then you would be cash flow positive and that is a great long term investment especially if you feel we are near bottom on housing prices. There are some good tax benefits as well. seek some guidance from your CPA on that aspect of keeping your home as an investment property.
- Jason Mainard, "JASON MAINARD"
- Contributions:71
If the rent covers most if not all of the mortgage it's not a bad idea. I have been a landlord for years and screen all my tenants. If you take the time to do credit, back ground checks and follow up with past landlords it can a good profitable experience. If you decide to use a management company, the rent will not cover all the expenses. You have to have many properties to make a management company worth it. So if you have the time and the patience renting your home could be the best idea while the market recovers. Best of Luck
- Bruce Cadden
- Contributions:156
Good answer Michael.
- Brian French
- Contributions:141
You can also rent it (month-to-month) while you market it for sale. You will just need to find renters who are willing to be cooperative with your marketing efforts and who will allow showings
- Michael Kara, "KaraHomesOrlando"
- Contributions:3
It depends on so many things - but if you can't be around to keep an eye on things, such as Debby recommended, or simply don't want to deal with the hassle, I would recommend a good property management company. You'll need one that can handle everything that comes up and keeps you in the loop, but not one that nickles and dimes you to death or calls to ask you about everything. A competent property manager is something every landlord needs. In many cases, renting it might be better than letting it sit vacant for several years as not running the systems regularly can often cause damage, and with nobody keeping an eye on it, small damage can turn into a big deal quickly. If you are waiting on the market to come back, be ready to wait a while. It won't happen overnight. Have you considered a short sale? It's actually a great option - don't believe everything you hear. Good luck to you!
- Debby Thompson, "Homestead Realtymilw"
- Contributions:275
It depends on you. Are you going to be around to make sure that they pay the rent? Do you have someone that will keep up any repairs that might be needed. Can you afford to keep your home plus rent or buy a new home? If you are going to purchase another home, talk with your loan officer and tell them what you plan on doing so they can tell you if you will be able to purchase another home. So bottom line, it is up to you and what you are able to deal with. What if.... You need to think of all the what if's and then decided if that is in your personalty to deal with. In todays market you might not be able to sell it for what you have into it. So if you need to move on that might be your only out. But don't forget the what if's.
- wetdawgs
- Contributions:26854
If you wish to take it off the market for a couple of years, and are having problems making ends meet, then renting may be okay. Of course, plan on a lot of fix up before putting it on the market again.
is it a good idea to rent your house if it's not selling
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