TO RENT OR NOT TO RENT, THAT IS THE QUESTION
Well there is a lot to think about when it comes to renting, selling or buying. They are all intwinded together. Today we are going to talk about the SELLING END OF THINGS. If you are a seller you may want to rent instead of selling. You may want to Keep it for future income. Or you may want to avoid capital gains at this time. Rentals are a good investment overall. However there are a few challenges that come with it.
First you need to make sure you are making the best decision for you and your family.
Then make sure you find the best tenant possible for your property.
Make sure that you look at the potentials renters credit history, this you need their written consent.
Check the past two landlord referrences, very important, unless they never rented before
Check at least two personal referrences, that are not related. ( if possible)
Check their employment, speak with their employer.
Make sure that their income can meet their living expenses or your will be paying them
Most important of all, trust your gut instinct.
Having the income each month is nice. If you have a mortgage on the property the tenant help you pay that. Also it is not a great idea leaving your property vacant. Unless of course you live in it. Keeping it and renting right now may be a good idea in today's economy. You MAY get more for the property in the future. Just take into consideration the cost to upkeep the property. Such as maintainance and repairs. Remember a happy tenant is usually a longer term tenant. Everytime a tenant moves out it will cost you money. Do your best to make the home as nice as possible, within your budget. It is a good idea to go into the home at least twice a year and check for repairs and maintainance, like leaky taps, clean out the eavestrough, check for mold in the basement. You may also have to do the grass cutting, yard work or snow removal, just depends on what is in your rental agreement. Be sure to keep open lines of communication with your tenant.
In my experience, and we have some rental properties, we feel it is a great investment. You must remember, whether you already own the property or you want to buy one as an investment, it is for the long term. In today's market it is a great time to buy. As for the selling end, it takes a little longer and prices are not as high. This will likely change in the future. Real estate cycles aways prove to increase over the year. When it dives it always comes back. It just takes time. However at least you have something that you can liquidate if you need to. However at least you have something that you can liquidate if you need to. This is just a few things to think of when you are considering to rent your home. If you need any help making this decision, or would like some more information or help renting, just give me a call or email.
Thanks for taking the time to read this. I hope that it was helpful.
Have a great day!!
Until next time! Be sure to check back.