Figuring out what to do with your house when you move can be a big decision. Should you sell or rent it? Whether you’re curious about the potential income from renting or worried about the responsibilities of being a landlord, there is a lot to consider.
Is Your House a Good Fit for Renting?
Even if you’re interested in becoming a landlord, your current house might not be ideal for renting. Maybe you’re moving far away, so keeping up with the ongoing maintenance would be difficult, the neighborhood isn’t ideal for rentals, or the house needs significant repairs before you could rent it out. If any of this applies, selling might be your best option.
Are You Ready for the Realities of Being a Landlord?
Managing a rental property isn’t just about collecting rent checks. It’s a time-consuming and sometimes challenging job. You may get calls from tenants at all hours with maintenance requests, or a tenant damages your home and you have to complete the repairs before the next lease starts. You may even have to deal with people falling behind on payments or breaking their lease early.
Do You Have a Good Understanding of What It Will Cost?
If you’re thinking about renting out your home primarily to generate extra income, remember that there are costs you’ll want to plan for.
Mortgage, Property Taxes, and HOA dues/fees are still your responsibility.
Landlord Insurance costs about 25% more than regular home insurance.
Maintenance and Repairs: Plan to spend 1% of the home’s value annually, or more if the home is older.
The cost of finding a tenant – advertising, finders fees, etc.
Vacancies: You aren’t receiving income in between tenants.
Property Management Fees. A property manager can greatly ease the burden, but typically charges about 10% of the rent.
Bottom Line
To sum it all up, selling or renting out your home is a personal decision that depends on your circumstances. Taking the time to evaluate your options will help you make the best choice for your future. I can provide you with critical information that you will need to make that decision. Call me today!
Laura Harbison, ABR, AHWD, BPOR, BS, CDPE, CRS, DRB, GRI, PSA, RSPS, SRES
Broker/Owner REALTY EXECUTIVES SOUTHERN NEVADA PROPERTIES
License NumbersB.0026537LLCPM.0164922.BKR
