Opportunities usually come out of the blue. For instance, there might be a temporary work contract that forces you to relocate.
Or perhaps a strong buyer’s market means it’s a great time to buy, but you don’t want to be forced to sell your current home at a loss.
Renting your home might be an option but there are lots of things to consider. For starters, you’ll want to conduct an in-depth financial analysis. Here are a few other things to keep in mind if you’re thinking about renting out your home:
- Step Away – Being a landlord isn’t always easy. You’ll need to detach yourself emotionally from your old home.
- Tax Talk – There may be tax implications, so contact your tax advisor as rules can vary depending on individual circumstances.
- Money Matters – Make sure to have a bit of extra money on hand in case the rent doesn’t cover your mortgage, taxes, utilities, insurance, etc.
- Playing the Market – You may be able to increase your equity as the market gains strength, but if it tanks, you could end up on the losing end.
- Be Prepared – The future’s uncertain so always be prepared for unexpected repairs or if your tenant suddenly falls behind on their rent.
- Raucous Renters – Tenants aren’t likely to treat your home with the same level of care as you once did so when it comes time to sell, your home may need some work.
As with any decision, it’s important to weight the pros and cons. If done right, renting can be one of the best financial decisions you ever make but you’ll need to treat it like a business, so evaluate the rental market and research landlord/tenant laws before moving forward.
If, on the other hand, you decide to put your home on the market, make sure you have a professional real estate agent to help advise you on how to sell your home quickly and for top dollar. Please don’t hesitate to reach out if you have any questions regarding this decision, or any other real estate related matters.