If you own a house or condo that you no longer need for personal use, you may be considering renting it out. Of course, that’s not always a simple decision to make. Being a landlord comes with its challenges, and for some people, those challenges just aren’t worth it, no matter what the benefits may be.
When trying to decide if renting out your property is right for you, you’ll want to take your time to make an informed decision. Here are some questions you should ask yourself as you try to decide whether or not to start looking for renters for your property.
1. What is the home’s current value?
Knowing the current value of your home will help you determine whether you are better off renting or selling. If your home is worth enough that you will make a good amount of money on the sale by cashing in your equity, you may be better off selling. If you think your home might be worth more in a few years, it might be a good idea to rent while preparing to buy.
If you’re unsure of the home’s current value, you might want to start by talking to a real estate agent, or property management company. You might be able to get some help looking at comparable homes in your area, which would give you a good idea of what a fair asking price might be. If you really want to be sure, you could always have your home appraised (which you would have to do anyway, if you decide to sell).
2. What condition is the house in?
If your house has been lived in for a while, it may be in need of some improvements. Those repairs could be very costly if you decide to sell, whether you have to spend more upfront to get the house in “sell-ready” condition, or you have to lower your asking price to make up for the poor condition and needed repairs.
If you have the cash to spend on any needed repairs, you can perform those right away which could raise your asking price (whether you’re selling or renting). If not, renting for a while might be a better option for you. Many renters are willing to overlook things that are outdated or are not upgraded, giving you time to save up to make some changes before selling.
3. Am I able to manage a rental?
The truth is, renting out a property can be a very profitable venture. But it’s also a very time-consuming one, and it can be very confusing, especially if you’ve never done it before. How much should you charge? How do you go about finding the right tenant? What sorts of things should you (and shouldn’t you) allow your tenants to do while living in the house? What will you do if rent payments are late, or if emergency repairs pop up?
These questions (and many more) need to be considered when you’re thinking about renting out your property. Thankfully, if you think the whole thing might be too much for you to handle on your own, you still have options. Your best bet would probably be a property management company, which would handle many of the technicalities of renting your space while helping you maximize your profits.
Renting your property is a great option if you own an unoccupied space, but make sure you do your research and think things through before jumping into this unknown territory.
If you think renting might be right for you, or you would like to know more about the potential benefits and downsides of owning a rental property, contact Real Property Management today. We can give you a free management quote and apply our years of knowledge and experience to your unique situation. Give us a call at 480-719-1243 today!