If you’re not ready to sell your home, you may have considered renting it out instead.
Sometimes a temporary work contract forces you across country or perhaps market conditions and exceptionally low mortgage rates mean it’s a great time to buy but you don’t want to sell at a loss.
As with any major decision, you should carefully weigh up the pros and cons based on your own unique situation. You'll want to do an in-depth financial analysis as well as consider more personal factors. Here are a few things to keep in mind:
- Tax Talk - There may be tax implications so contact your tax advisor as laws vary depending on individual circumstances.
- Money Matters - Make sure to have extra money on hand if the rent doesn’t cover your mortgage, taxes, utilities, insurance, etc.
- Step Away - Being a landlord isn't always easy. You’ll need to detach yourself emotionally from your old home.
- Playing the Market - You may be able to increase your equity as the market gains strength but if it tanks, you could come out on the losing end.
- Be Prepared - The future's uncertain so be prepared for unexpected repairs or if your tenant suddenly falls behind on their rent.
- Raucous Renters - Tenants won't treat your home with the same level of care, so your home may be in poor condition when you decide to sell.
Renting out your home is a huge decision so make sure you consider all of the scenarios. If renting's a viable alternative, you'll need to treat it like a business so evaluate the rental market and research landlord/tenant laws before starting the process.
If on the other hand, you decide to put your home on the market, make sure you have a professional real estate agent on side to advise you on how to sell your home quickly and for top dollar. Please don’t hesitate to call if you have any questions regarding this decision or any other real estate related matters.