Should You Rent Your Home?
If you own your own home, the thought has probably crossed your mind: if you were to be offered your dream job out of state, should you sell or rent your home? Naturally there are many factors to weigh before making such an important decision.
- You’ll want to think about your reasons for keeping ownership of the home:
- Do you like the home so much that you want to hold on to it in case you ever move back?
- Are you looking for an extra tax break through property depreciation?
- Do you want to use the home as a basis for retirement investment?
There are other factors to consider that may outweigh the perceived benefits. For instance, are you prepared to be a long-distance landlord, hiring someone to maintain and manage the property for you? There are other costs involved as well, such as advertising costs, turning costs (cleaning and painting between tenants), property taxes and insurance, utilities paid out of your pocket when your property is between tenants, and accounting costs. In order to assess these costs, you should research the numbers in your market. Expenses often run 30 to 40 percent of income before the monthly mortgage cost.
Set the Right Rent
The best place to start is by checking your Sunday newspaper for the range of rent prices in your area. You may also want to join an apartment owners association to learn of trends affecting rental rates. Common sense dictates property with repair or maintenance issues won’t demand the same price as a well-maintained property. Amenities like dishwashers, laundry facilities, and parking can affect a renter’s decision. “There are other costs involved as well, such as advertising costs, turning costs (cleaning and painting between tenants), property taxes and insurance, utilities paid out of your pocket when your property is between tenants, and accounting costs.”
Tips provided by Intown Atlanta Real Estate
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