3 Things You Must Do If You Decide To Rent Your House Out If You Cannot Sell It
If you are relocating for your job and are having trouble selling your home, you may want to consider renting it out instead. Renting a house can be a great way to make money in the future, and it is a great idea for a house that will not sell. If you decide to do this so that you can relocate and not have to make two house payments, here are some tips to help you with this.
Make sure you charge enough
One of the main points of renting a house when it will not sell is being able to buy another house and not be responsible for both payments. Because of this, you will need to be able to rent your house out for a price that is well above the amount of your mortgage payment. In addition, the rental income should also cover the insurance you must pay on the house and the property taxes.
To be certain you will have enough money to cover all these things and unexpected expenses, you should try to rent the house out for an amount that is at least 20% higher than the amount you must pay monthly for the house. For example, if your mortgage payment, insurance, and taxes are $1,000 per month, you should aim for getting $1,200 per month for rent on the property. You may even want to ask for more than this if you will be hiring a property management company for help managing the property.
Hire a property management company
If you are relocating for work, you will most likely move far away from your house. Because of this, you will probably have to hire a property management firm to take care of your house. The firm will take care of repairs and maintenance, and they will be there to help collect rental payments if necessary.
Thoroughly screen applicants
The third thing you will have to do is screen the applicants that want to rent your house. This should include running background checks to find a person that appears to be trustworthy. It will also involve creating a good lease to use with the person you select as your new tenant. A real estate agent might, like one from Charles L Moles Real Estate Services, be able to help you with this, or you could visit a real estate lawyer.
Renting a house is a great alternative to selling a house, but renting a house can be overwhelming. If you really do not want to have the responsibilities of being a landlord, you may want to decrease the asking price of your home and hire a good real estate agent to help you sell your home.