To Rent or Not to Rent that is the question......

 

 

                 


A few years ago before the housing crash it was hard to find homeowners willing to rent out there properties. Homes were selling, mortgages were in abundance and for those with less than perfect credit there was always creative financing. There was simply not a need to rent your home out unless you were an investor or a homeowner needing to relocate temporarily and on the fence about selling.

                  Jump into the present and you will find that renting a home is one of the most common request handled by Realtors. What has changed you ask yourself? The answer is almost everything.

                 The biggest change came with the market crash, home values took a nose dive. Sellers where no longer able to sale their homes for what they were worth. The only options available for sellers needing to relocate was to foreclose on the property, short sale it or rent it out.  A foreclosure can devastate your credit and ensure you will not be able to buy a home for years. Short sales even though they are a much better option than a foreclosure are lengthy and you must meet certain guidelines by your individual mortgagor. A few highlights to this option would be that you would be able to buy a home again in 3 years with a FHA loan, 2 Years with a VA loan and 4 year for a conventional loan with a 10% down payment. You may also qualify for relocation assistance.

              








     However for those that do not want to take either of those routes renting may be your best option. A few positive things to take into consideration are as followed

*Your able to count those rental payments as income after reporting it on your tax returns for two years in most cases.

*You will be able to relocate and still have your home mortgage payment covered.

*The property is not left vacant and subject to vandalism

 * You may have a small monthly income if the home is paid for or if the rent payment is more than the monthly mortgage.

 

The cons of renting your home may outweigh the pros for many of you and should also be taken into consideration before making this decision.

*You have to have patience and be able to work with various personality types.

*Finding great tenants that pay on time and take care of the property can be an uphill battle.

*If the tenant loses there income late rent payments are more than likely sure to follow.

*If your home is in an hoa community you will need to make sure the tenant follows the rules.

*Most tenants have pets are you willing to allow pets in your home?

 

The list can go on and on. Before you choose ask questions. If you feel that renting is the best option for you give yourself enough time to find the best tenant possible. Have each prospective tenant fill out a complete application. Check everything written on the application and if possible partner up with a tenant screening company.  Ask for references and call them. This is your home you owe it to yourself to know as much as you can about that applicant.

 

              As always thank you for reading my blogs and let me know if you have any questions.

Morrishia Dooley-Real Estate Adviser/Associate Broker

Solid Source Realty Company

Direct-678-886-8353

Office-770-475-1130 ext 3815

website- www.galleryofdwellings.com

email- thedwellingspecialist@gmail.com

blog- therealestateavenue.blogspot.com

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