How much will your home rent for?
So your home hasn’t sold after being on the market forever. You’re tired of having to pay the mortgage on a home you don’t want. Renting your property out is probably the best solution for you, at least until the housing market picks back up. But renting your home yourself can be a tricky task. There are plenty of dangerous pitfalls that you can fall into. Usually, it’s a better idea to hire a property management professional to handle the rental of your home. They’ll be experienced in the process and know how to avoid many of the mistakes that can easily occur. You may not even realize, but there are numerous dangers that can come with renting out your home yourself.
One thing that many homeowners do when renting a home is to set the monthly rent at whatever their mortgage payment is and call it done. But renting carries costs with it, such as repairs you may not be prepared for. And your area may have rental rates that are much higher than your monthly mortgage payment may be. Property management companies are experts in the market, and know what a fair rental price is. You shouldn’t short-change yourself when deciding to rent. Professionals can ensure that you don’t. Another problem is proper advertising, which can be hard to do. Letting the pros handle it will get you a tenant quickly, since they know exactly how to attract renters.
Speaking of renters, they can actually be the biggest danger of renting your home yourself. It’s hard to find renters, for sure. But getting rid of bad ones is nearly impossible. Property management groups handle many functions that you may overlook. A rigorous screening and application process helps weed out the undesirable renters that can destroy a home and skip out on rent payments. And professionally drawn up leases ensure that eviction goes smoothly, should the situation come to that. Background checks and leases are vital to protecting yourself and your property.
A lawsuit is another danger you’ll want to avoid. If something is unsafe in your home and it causes injury to a tenant, you could be looking at an expensive lawsuit. Property management companies usually send a property inspector to your home to make sure it is meets all safety guidelines before renters move in, protecting you from a big lawsuit. And if you’re moving out of state, having property managers nearby makes handling minor repair and issues easy. Renting your home may be a necessity in today’s housing market. Taking undue risks, however, isn’t. Letting a pro help with the process may be the smartest move you make, short of deciding to rent your property.