Have you tried to sell your home, but it just won’t sell? A lot of people in this situation have decided to rent their home instead. There are some things to consider though. First of all, thinking like a business person is very important.
- Consider that tax implications of renting the property, and ask your accountant or tax advisor for advice.
- Set a fair rent that is high enough to pay your mortgage and put some aside for incidentals, but low enough to make renters want the property.
- Familiarize yourself with landlord-tenent laws and regulations.
- Screen applicants well and ask for a deposit. If you are going to apply their rent towards an actual purchase of the home, the up-front fee should be about 1% of the purchase price.
- Be very clear about the rules of the house in the lease contract, an attorney can help with questions.
- Consider hiring a property manager to help you with repairs and to help keep watch over the property. Do you want the tenent to call you at 3 am to fix the toilet, or your property manager?
- Is the property a condo? You should check with your condo association to know what the rules are regarding renting out your condo.