13 July 2015

Sell You Tooele Home Instead of Rent it!

This is a post that should be titled; Sell your Tooele home instead of rent it.

Lately I have heard a lot of questions like, "think I should rent out my house while prices are rising, and make more money when i do sell"?

I have always had a hard time answering that question. Who doesn't want their clients to make more money?  But... I also know and have heard some horrible war stories about folks that became landlords and got way more than they bargained for. ............................And I don't mean more money when they sold.

Yesterday though I got the following post from KCM (that I re posted on Facebook) . This post presented a pretty realistic picture of the trials of being a landlord.

Be sure to take the quiz about questions you should ask yourself before you make the decision to rent out your home.

 

Should I Rent My House Instead of Selling It?

Posted: 13 Jul 2015 04:00 AM PDT

Should I Rent My House Instead of Selling It?  | Keeping Current MattersThe results of Fannie Mae’s June 2015 National Housing Survey, were just released showing that more and more homeowners are warming up to the idea that now may be a great time to sell their home. The amount of respondents that stated that now is a good time to sell rose three percentage points to a survey high of 52%; which may translate to a healthier market as more homes are listed in the coming months. At the same time “the percentage of respondents who expect home rental prices to go up rose to 59% – a new survey high.” Doug Duncan, senior vice president and chief economist at Fannie Mae, gave this insight: “The expectation of higher rents is a natural outgrowth of increasing household formation by newly employed individuals putting upward pressure on rental rates.” There is a chance that those who believe rental prices will rise may consider renting their house rather than selling it at this time. However, if you have no desire to actually become an educated investor in this sector, you may be headed for more trouble than you were looking for. Are you ready to be a landlord? Before renting your home, you should answer the following questions to make sure this is the right course of action for you and your family.

10 Questions to ask BEFORE renting your home

  1. How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).
  2. Because of the economy, many homeowners cannot make their mortgage payment. What percentage of tenants do you think cannot afford to pay their rent?
  3. Have you interviewed experienced eviction attorneys in case a challenge does arise?
  4. Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
  5. Will you allow pets? Cats? Dogs? How big a dog?
  6. How will you actually collect the rent? By mail? In person?
  7. Repairs are part of being a landlord. Who will take tenant calls when necessary repairs come up?
  8. Do you have a list of craftspeople readily available to handle these repairs?
  9. How often will you do a physical inspection of the property?
  10. Will you alert your current neighbors that you are renting the house?

Bottom Line

Renting out residential real estate historically is a great investment. However, it is not without its challenges. Make sure you have decided to rent the house because you want to be an investor, not because you are hoping to get a few extra dollars by postponing a sale. 

 

I hope this post has been helpful and that I have possibly saved you some major headaches.

If now you have decided to sell your tooele home instead of rent it, give me a call. Berna Sloan 435-840-5029.

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