Rent Price. Here is the first thing new landlords must accept – it cannot be based on one’s mortgage payment or the costs to keep the home.(In most cases – not all – there are some who’s homes are paid for or who have owned for several years that have low mortgages that can base rent on their payments.)
And the second – ask yourself this question: Is it better to leave the house vacant for months holding out for your rental price – or take a lower amount and have the home rented ?
It’s simple math.
Vacant home. Mortgage payment. No income.
Rented home. Mortgage payment. Income.
It’s comes down to two choices: income or no income.
The longer a home sits vacant – the longer it will stay vacant – and the longer it will cost you to own it.
You may finally get your rent price – only to have that tenant move out because they found something comparable or better – at a much lower price. Or you will just end up with a tenant that stops paying rent because they can't afford it anymore.
To answer the next question, “Do I really think a tenant will break a lease?” Yes. It comes down to the bottom line for people and if it means breaking a lease or walking away home from home ownership or renting – people will.
The best thing to do when renting your home is to look beyond the mortgage payment, look beyond making money every month – simply price it correctly, secure good tenants and put the focus on how to make your rental home an investment. Not a revolving bank account.
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This blog is written with my opinions and my opinions are presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions. Gabrielle Kamahele Rhind - 2011. If you want to reprint parts of this - just email me for my permission:TucsonsRealEstate@gmail.com.