Deciding to rent out your home is a big decision. Renting your property can be a great solution for people who wish to keep a property in their name, but there are many responsibilities that go along with it. Consider the following pros and cons that come with renting.
Maybe you just aren’t ready to say goodbye to your property for good. Maybe you only need a temporary change of scenery. Whatever the reason, many people wish to keep the property in their name. Renting out the property doesn’t have to be a long-term solution. You can always move back in or decide to sell later.
Having someone pay you rent each month can cover the mortgage, the taxes involved, and the homeowners insurance.
You may be eligible for certain tax deductions. These expenses may include mortgage interest, property tax, operating expenses, depreciation, and repairs.
Being a landlord is a lot of responsibility. If you have ever rented from someone, you probably understand that the landlord’s job can be unpleasant at times. As the landlord, it is your job to deal with any maintenance issues that arise, communicate regularly with tenants, and track down any missed rent payments. Do you have the time and patience to handle these responsibilities?
Possible Property Damage
We all know someone who has to hide their cat when the landlord stops by for maintenance. And if you’ve ever rented before, did you really follow the “no nails in wall” rule? Signing in agreement of a policy is one thing, but actually respecting that policy is something else entirely. Even if you manage to find a perfect tenant, regular wear and tear is inevitable.
Other Things to be Aware Of
When you are renting out your home, the headaches will be there. But not all of them have to do with lousy tenants. They also have to do with tax laws, property guidelines, and more.
Rent may exceed the cost of your mortgage, leaving you with a nice profit. But remember, you’ll still have to pay for property maintenance. And if you don’t personally live nearby, can you afford to have a handyman on standby?
Renting out your home isn’t for everyone. Before making a decision, spend a good amount of time researching your options.