Should I consider renting out my house until the market improves?

This is my update to this article I posted originally about a year and a half ago. The sales market has not improved, in Payson.

In today's real estate market many Owners are finding that they either can't sell, or might have to sell at a very deep discount to find a buyer. Many are, therefore, turning to renting as a possible alternative to a bargain basement sale. (I'm talking here about non-occupied properties. We have many in our area- either they are 2nd homes, investment property that isn't selling, or the Owners have HAD to move for some reason).
These are some of the issues we raise with Owners who come to discuss it with us:

-Can I AFFORD to rent my house for enough time for the market to recover?
    -At least in our area (Payson, AZ) we don't see the market turning around for some time
    -Possible rent may OR MAY NOT be enough to cover your mortgage payment- rents are coming down somewhat, and there is more competition than ever, especially higher end
    -a reputable Property Management company is not going to give any refundable security deposit 
from the Tenant to you, so don't count on that money. It will probably go into the company's trust 
account until the Tenant moves out.
    -Do your homework and find out how long it takes comparable properties to rent, and for how much $.
    -Can you make the payment if the house doesn't rent for a few months, or if the Tenant leaves and  the property takes awhile to re-rent? This is a BIGGIE. You just can't count on the property renting immediately.
    -Can you make any necessary repairs to make the place safe for renters?
    -Can you do any fix-ups needed to make it "rentable"?
    -Can you do necessary maintenance while the property is rented? What if the water heater goes out? The furnace or AC? What if there is a plumbing or roof leak? Can you repair/replace necessary items? Cosmetic items don't have to be done, but a Landlord must provide the basics.
 
-How "rentable" is my house?
    -How much competition is there in your area for quailified Tenants? (Believe me, NO Tenant at all is much better than the unqualified kind)
    -How easy it it to rent properties in my neighborhood? Ask a good Property Manager. (In Payson, that means us).
    -Is the rent amount I want/need reasonable? Again- ask a professional.
    -Am I willing to allow pets? (people LOVE their pets, no pets makes a place less rentable)
    -If you want to leave your house on the sales market Tenants will NOT want to rent it. You
will probably have to give them lower rent or other concessions to get it rented. And the Tenant 
CAN and may "blow the sale" with any prospective Buyer. Better to take it OFF the sales market.
   
-How ready am I to give my house up to Tenants?
    -How emotionally attached are you? I guarantee you will have at least normal wear and tear.
    -That "accent" wall you love may make the house harder to rent. We don't want you to leave your treasured drapes (OR the furniture you just don't want anymore)
    -Are you willing to allow children? Fair Housing violations are VERY expensive.
    -Once the property is leased you CANNOT come on the property except with proper notice.
    -You MUST comply with any and all national, state, and local laws regarding rentals.
  
This is not intended to be a comprehensive list of things to consider. It is intended to get you thinking. A good (read "experienced") Property Management Company can give you information particular to your area. If you decide to rent out your house we STRONGLY recommend letting a professional handle it. Mistakes (letting in a Tenant who can't pay, tears up the house, makes a meth lab, fills it with illegals, etc.) can be very expensive.
Renting CAN be a viable option- don't let this scare you off. Just be aware of the possibilities and
TALK TO A PROFESSIONAL!

In the Payson, AZ area, call Prest Realty. We are the rental experts for Payson. Visit our web site for more information.

AR people- what would you add?