If your home won’t sell and you’re considering renting, you’re not alone. Plenty of people switch from homeowner to landlord when unexpected circumstances arise.
Peggy Abkemeier from Rent.com told Time, “We’re finding that a lot of people have houses that they would have sold and now need to rent. The demand is there. One out of every three renters who come to our site is interested in this new inventory.”
When your property won’t sell, renting it out sounds like a profitable alternative; a vacant home won’t bring in revenue. Although, renting your home will make you a landlord, and being a landlord isn’t easy.
Before turning yourself into a landlord, you need to know what responsibilities you’re looking at. Consider the following information before making a decision.
Zillow published a study in 2016 that concluded spring is the best time to sell a house. If you’ve been attempting to sell your home out of season, don’t expect it to automatically rent. The same seasonal rules apply to selling and renting your home.
People don’t generally move during fall and winter, although there are exceptions. During the holiday season, people are busy and money is tight. If you’re renting between December and February, be prepared to reduce the rent slightly below market value to ensure your place gets rented out.
Renting home because you didn’t get your asking price is an emotional decision that can hurt you. Becoming a landlord isn’t a quick fix to ease the burden of perceived loss; it’s a long-term commitment that takes time and money to sustain.
Renting your home because it sounds better than taking a loss on your sale price will cost you more money, time, and energy if you’re not careful. Being a landlord in Katy, Texas isn’t a hands-off job, unless you’ve hired a property management company.
The weather isn’t the only reason homes don’t sell. Other factors like price, condition, and neighborhood can be a large part of the equation. Additional factors specific to why your home isn’t selling may not be obvious to you, but your prospects will tell you if you listen closely.
There are many things buyers hate. What objections did your prospective buyers express? Take note of everything they’ve said, even if you disagree. The reasons your home didn’t sell might also be obstacles to renting it.
If your mortgage payment is $1,700 per month, but you can only rent your home for $1,500 per month, renting it out doesn’t make sense. Selling at a loss, in this case, is your best option.
If your ultimate goal is to sell your house, when you rent it out, detail how and when showings will take place in the lease. Getting the tenant to agree to showing terms ahead of time will encourage them to be cooperative.
The cost of being a landlord is extensive and shouldn’t be overlooked. Selling your home at a loss might be a better option, especially when you don’t have the time (or the desire) to manage tenants.
Some of the costs you’ll encounter as a landlord are:
Being a landlord involves more than collecting rent and calling in repairs. It’s an unrehearsed dance between you and the tenant. When being a landlord isn’t your full-time job or passion, hiring a Houston property management company to take care of your tenants is the smartest solution.
At Green Residential, we’ve got decades of professional experience in property management. From the ground up, we handle the time-consuming, energy-draining tasks that property investors don’t have time for.
We search for tenants and screen them to the highest standards. We also collect rent and handle repairs and maintenance through our existing relationships with a network of skilled professionals.
If you’ve decided to rent your home and don’t want the burden of being a landlord, contact us today for a free analysis. Find out how we can help you generate hassle-free income from your investment.
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