If you’re reading this article, you are probably thinking of renting out your home. There are a variety of reasons why a home owner such as yourself considers renting out their property. It could be that you are looking for ways to help manage your mortgage better, you’re being transferred for a job, or you just have too much space available.
In these scenarios, you are probably considering whether you should rent it out, or sell your property. We can tell you right now, there are a lot of factors to consider including, but not limited to:
- Your future housing plans
- Your property location
- Your financial situation
- State and federal income taxes
- Your tolerance and patience being a landlord
- Your long-term plans
Here are a few questions you should ask yourself in able to determine whether your not you should rent out your home.
How much can you charge for rent?
Can you charge enough for rent to cover half (or more) of your mortgage payment? If this is the case, it would be a smart move to rent out your home. The extra income can be valuable to keep your financial stability afloat, and maybe even fund your retirement!
How much tax would you pay?
If you have enough expenses to offset the income you will get from the tenant’s monthly rate, there is a high possibility that you will not have to pay taxes as a landlord.
Additionally, once you finish paying of your mortgage, you can then sell your house and convert your equity into a lump sum. Or you could continue renting out your property for additional income – this is all up to you!
How is your home condition?
Most of the time, renters will be willing to overlook outdated home fixtures because they are not looking for a place to stay long-term. In short, they are just passing through. In this case, if you do not have enough financial stability to invest in home improvements, you can use the rent money. This way, if you want to sell your home in the long run, all improvements and fixes are accounted for.
How patient are you?
As a landlord, there will be a lot of ups and downs. You will encounter different types of renters from people who fails to pay the rent on time, to inconsiderate renters. You need enough patience to be a landlord and deal with these cases with a cool head.
Once you have weighed down these factors, you have enough ideas to decide whether or not you should be a landlord. Now, the decision is up to you. We hope this article has helped!
See you next time.