Should I Rent Out My House/Townhome/Condo?
Many people are trying to decide whether to rent out a property or sell it in this still very changing real estate market.
The best advice I can give has two parts.
1. Speak to 2 or 3 Realtors in your area. Ask them for a realistic value of your home and the length of time in which they expect it to be on the market. And also ask them if it is a viable rental property and the expected rent you would collect. Be sure to get as much information as you can – typical lease terms and time to let, realtor fees for both sale and rental, typical closing costs.
Be sure to collect all the costs about running your property – association fees, garbage or sewer rates, taxes, etc.
2. Talk to your tax accountant and have them lay out the fiscal pros and cons of selling and renting. They will be able to advise you on any tax issues that might push you in one direction versus another. With certain tax credits, you may still see a benefit even if the rental rate is close to your current PITI (principal, interest, taxes and insurance) costs.
And if you decide to rent, consider hiring a property management company to help you out, especially if you will be remote. It makes sense not to have to worry about getting service people in for appointments, asking your tenants to take time from work to do so, etc. And even if you are local, you need not take time off from work to handle these tasks.
Make sure the company is insured and get references from current customers.
Good luck whether you sell or rent – you can have peace of mind either way!
Check out Somerset Hills Property Management