Moving to a new home is an exciting turn of events in your life. Whether your children have moved away and you want to downsize, or your family is growing and you need more space, or even if you just want a change of scenery, moving into a new home can be a very rewarding experience for everyone involved.
Chances are, if you’ve moved before, the process is something that you’re used to. You go to the realtor or sell your home by yourself, then negotiate for the new home, before finally solidifying both deals and moving to your new and exciting location.
However, did you know that there is another option? While it might seem attractive to sell your home directly and get a lump sum back for it, you could, in all actuality, rent out your old house to new tenants, generating income for a long time to come.
While this option may seem complicated, with our help, you could do it fairly simply. And instead of generating a finite amount of money, with renting out your home, the money you will get each month is fairly endless as long as you have tenants living in your old home.
Renting Out Your House: The Advantages And Disadvantages
Like any big decision, renting your house out has its pros and it has its cons. Luckily for you, we will be going into detail here to explain to you what you are to expect when renting out your home and how you can make the most of it if you decide to do it.
The pros of renting out your house are fairly self-explanatory. Like we mentioned before, the profit you have to gain is near limitless, since you can keep renting it out for years to come.
Another benefit is that the rental rate for your property will increase over the years, meaning you can charge more while your mortgage rate stays the same, generating a cozy profit for you that will grow year after year.
Lastly, if you do decide to sell the house outright, you have more of a time frame to wait until the house becomes worth a lot more than what you originally bought it for, again, boosting profits up by a considerable margin.
The first major con we will talk about is the fact that you will have to be a landlord. Being a landlord is a hard job, especially when you consider the fact that if your house is vacant, YOU are the one who has to pay the mortgage on the house.
If you have bad tenants who cause damage, are late on rent, or cause a ruckus, chances are that all falls on your shoulders, which could be quite a hassle. Another downfall is that whether the house gains or loses value over time is really a hit or a miss.
If you happen to keep a house longer and it ends up becoming less valuable, you might wind up losing money, so be careful.
So all in all, it is your decision whether to rent your house or not. Lucky for you, our property managers can help you on the path to renting your house and making it easier for everyone involved, so be sure to call or click today for more information!