Wondering whether it’s a good idea to turn your home into a rental property? You aren’t the first to consider the possibility. It’s a question that people grapple with every day. So, what do you need to know? Here are several things to think about before you put it on the rental market:
Are You Ready Be a Landlord?
If you are ready and willing, then continue evaluating the option to rent out your home. If not, then perhaps you should rethink your plans. You can continue to own the place and live in it, or you can sell it. Being a landlord is a fair amount of work and, at times, it can even be a headache. Done well, the rewards can be worth your while, but don’t go into it thinking it’s a cakewalk.
As a landlord, you are responsible for maintaining the home and making timely repairs when needed. Of course, you can hire others to help with these requirements, but you’re the one who will foot the bill. Make sure to keep this in mind, and be prepared to pay for such things when needed. Still thinking of turning your home into a rental property?
An unoccupied rental house is losing money. At the same time, finding a bad tenant that fails to pay on time, or causes heavy damage to your property, is also losing money. So, what is a landlord supposed to do? Find and attract good tenants with good credit and stable employment. It takes time, but once you understand how to find quality tenants, you’re on your way. It’s a critical skill that will make or break your success.
In the process of finding good tenants, you’re likely to encounter some that are less than ideal. They may be neglecting the property or disrespecting neighborhood rules. Perhaps they fail to pay rent. These issues must be dealt with, and it isn’t always pleasant to do. However, renters do have certain rights, so be sure to follow laws and procedures as you deal with issues that may arise.
Before you decide to rent your home, take note of the market conditions. If the market favors sellers, then you might consider selling the property at top dollar. On the other hand, if the market favors buyers, then renting your home can be a great way to continue to accrue equity while you wait for home values to rise once again.
Rental properties can be a fantastic investment, but it has to make sense. You’ll want to spend some time evaluating the tradeoffs between rental income and any tax deductions you may incur. Other things to consider should include projected expenses, current equity, the value of the property, etc. If needed, your accountant can help you to analyze the investment potential of renting your home.
DUFFY Realty is a reputable agency that puts people first. Helping people like you are the reason we’re in this business. If you’re ready for a team of knowledgeable professionals to provide some common-sense insights in today’s real estate market, give us a call: (678) 318-1700. DUFFY Realty has Landlord services that can help you turn your home into a rental property.