A new market approach for sellers has been the topic of discussion as of late: renting your home rather than selling it. While dealing with a home that is taking time to sell, some homeowners have opted for opening their property to tenants as a way of earning extra income.
As sensible of an idea as this may seem, renting property presents its own unique set of challenges. Consider these four important aspects before changing the status of your home:
#1. Tenants: How will you decide who to allow into your home? Do you plan to inform your neighbors of this new living situation? Will pets be allowed? Have you spoken with an attorneys in case his/her services for eviction would be required?
#2. Rent: In what manner would you collect rent? How would you respond if a tenant stated that they were unable to pay their rent one month (a common occurrence with families during holidays)?
#3. Repairs: Will someone be readily available if a repair needs to be made? Do you know the necessary craftsmen? How often will you inspect the property for damages?
#4. Insurance: Since liability is greater in non-owner-occupied homes, will your insurance premiums increase?
Having a detailed plan will help to ensure that both your family and your home are protected. Take the time to weigh all your options so that you may enjoy the peace-of-mind that comes with making a wise investment in your future.