Renting: Considerations for Homeowners
So you’re looking to move out of a house or want to make a return on a non-primary home. There are two main options for homeowners in this situation – you can either sell the home, or rent it out. Both options have their pros and cons, and the “right” decision has to be based on your individual situation. Some of the things to consider for renting include the age of the house and the kind of screening and lease agreements you’ll have in place.
Older houses are often cheaper and thus attractive to investors looking for rental properties, but they can end up being more trouble than they’re worth. Older plumbing, wiring and fixtures are more likely to break than newer houses. Water heaters and furnaces may be outdated, inefficient and also prone to breakdowns. These are all fixes that must be made by the owner; they have to be done quickly and out of your own pocket. If you have the time and money to put into modernizing an older house it may turn into a good investment because of the lower sale price and property taxes.
Responsible renters who will take care of the property like their own are worth their weight in gold, and nearly ensure that the property will be profitable. However, there is no guarantee that your renters will be responsible and the house may require even more maintenance. Homes that allow pets are in high demand, but you will have to decide if it’s worth the additional risk to allow them. Being a landlord may require a lot of time and energy, and in the case of people who do not pay on time may require some unpleasant exchanges. Lease agreements must be done properly and legally if you wish to have any protection against legal issues. Many homeowners opt to hire a rental management company to worry about all the issues that may arise. They will handle screening rental applicants, enforcing eviction orders and coordinating repair and maintenance professionals for your property. You will have to decide whether hiring such a company will be worth the cut in your profits.
