In a market where home must drop their prices in order to sell, many wonder if it would be better to lease out their home instead of selling their home at a reduced price. However, it would be better to sell your home instead of renting it out, due to many unforseen costs that the leasing process entails, as well as challenges that many people cannot afford to take on.
If you are thinking about leasing you home as you try to sell, tenants can make this process very difficult. Since they do not own the home, tenants usually do not keep the home in a good condition. This can lead to many unforseen problems, as the landlords are the ones who must pay for the repairs. If the repairs and whatever else is not made, then the home has an even less chance of it being rented out again or sold. Since the market is still off balance, every seller is trying to give their home a good asthetic appearence, and a home that is in disrepair or is unasthectic will most likely spend more time on the market than it would have originally.
As well, being a landlord an be a very difficult job. Tenants will call you for everything that goes wrong, and many do not take into regard that you have your own life and are not at their beck and call. Being a landlord is also a large finacial duty, and if you are thinking of putting your home up for lease only so you can gain more money that you would be losing in sales price, you would most likely loose the difference and more because of bad tenants.
If you do not have a tenant, the bills will not stop comming. The landlord will be saddled with two mortgage payments, as well as other payments like real estate tax, insurance, and maitenence bills. Anyone who is not prepared to make that commitment would be placing a large drain on their finances that many will not have the funds to pay for in the first place.
The market, at this time, is still a gamble. If you are not prepared to make the financial commitment that it takes to lease out a home, then I would suggest that you do not rent out your home, and sell your home for a lowered price.
If you think leasing homes is for you, we can manage your property on your behalf. For information regarding our management services, please visit me at www.LocateArizonaHomes,com click on Services, and Property Management
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