There comes a time when you know you just need to move. Perhaps you’ve received a job offer in a new location, or the scenery just doesn’t do it for you anymore. Whatever the case, the next decision is whether to sell or rent out your home. At first, it might seem like renting out your property to someone else means extra income. This is true, however, it is not without its responsibilities. Think through these considerations before making the decision of whether to sell or rent out your home.
Simply because you will be receiving rent checks from tenants doesn’t mean that the bills go away. You still need to cover the mortgage, insurance, property taxes, etc. In fact, there are other costs involved as well. For example, you may need to pay for legal fees, increased taxes, and more insurance. Landlord insurance protects your property in the case of damage due to accidents, fire, and storms. Liability insurance is needed in case someone gets hurt while on your property. If utilities are included in the rent you’ll need to pay this as well. If you have a property manager then they will need to be paid. Maintenance will always be something to tend to and if you plan on hiring an accountant to keep track of everything, you’ll need to pay them as well. This isn’t to say that renting out your home isn’t worth it, but the numbers need to be considered. Add up all estimated expenses for a year and compare it with what you can get in rent. If you are able to make a decent profit, it might well be worth it.
Life As A Landlord
If you choose to rent out your house, you will then become the landlord. This means that you are the one the tenants will be calling when the water heater breaks in January. It also means that you need to come up with a plan for when tenants don’t pay their rent or are regularly late. Screening your tenants is important, however, it is not always possible to ensure good tenants. If they’re disrupting the neighborhoods with regular parties, you’ll need to respond. There will likely be times that your house is vacant between tenants as well. This means that you will need to cover the expenses without the income from rent. Perhaps these are not a problem for you. If so, renting might be a good idea. However, some may consider it not worth the trouble.
When homeowners consider renting out their property it is typically because of the investment. Another option is to sell your home and invest the money in another endeavor that doesn’t require as much maintenance. A stock mutual fund, for example, can provide a return that is less work than maintaining a property and the tenants that occupy it. For more help with everything real estate contact experienced Lemont IL Realtor Chris Budz today!