In the advent of the sub prime mortgage crisis many homeowners are opting to rent properties as opposed to trying to sell in this unstable and already saturated market. But, land lording involves some savvy, so listen up and heed some valuable advice, before diving into the world of renting and leasing your home.
Number one, take note that you're not the only one is this position, so don't immediately assume it'll be easy as pie and that you'll fetch a pretty penny in terms of your rental income. The reality is that in 2005 and 2006 when money flowed like Italian table wine, well everyone had the same idea to get rich fast through real estate. Today, these folks are your competitor landlords and it's dog eat dog out there. With all this competition, there's a lot on the market and rental prices are being driven steadily downward.
Because of this competitive market, if you want to ensure your place gets rented and stays rented for a while, then your going to have to price right- and in most cases this means under pricing your rental property. So keep a close eye on similar rentals in your area and be prepared to bite the bullet and offer yours at a bit less than everyone else's. You want to be the dog with the bone, right? So, jump through the right hoops Bo Bo...
Make sure you meet your prospective tenants and do a proper walk-though with them to take stock on the condition of the property and to go over the terms of the lease. Of course, you'll also want to check up on their credentials and credit history. Be absolutely thorough with this. Ask for references, both professional and personal and then call those references. You'll want to use your instinct as well- but some hard and fast research is necessary to ensure these new tenants will be good custodians of your property.
When contemplating the idea of renting you must understand that there are still costs associated with renting a property. In many cases you won't always be able to charge as much as your monthly mortgage payments, so be prepared for that shocker. Also factor in maintenance fees, insurance, the cost to make ready and to clean-up/repair when the tenant moves out. Likewise, if you use a rental agency this is another substantial cost to factor in. At the end of the day, you'll want to compare these costs with the cost of selling your home and decide whether or not it's actually worth it to rent.