Kansas City Homeowners: Should You Rent Your Home, or Sell It?
If you live in Brookside, Waldo or Red Bridge in South Kansas City, you may have noticed that the real estate sales market is moving a little slowly. After hearing from their real estate agent, many homeowners find out how much equity they would get from their home sale, and the net proceeds aren’t what they expected. You may determine that now is not the time to sell your home. Perhaps, you want to wait to see if prices increase in the future. So how do you determine if renting your house may be an option for you today?
3 Scenarios That Mean That You May Want to Consider Renting Your Home:
1. If you have your home on the market, and according to your real estate agent and the comparable recent sales, it is priced competitively – and is still not getting showings, or offers.
2. You want to move to a different home either because you need to relocate, or need more or less space – or just want to move to another house that meets your needs.
3. You simply want to take advantage of the great low home prices in this buyer’s market. Plus, with the favorable loan terms, you realize that with the low interest rates (in some cases, under 4%), that now is really a perfect time to buy.
If you decide that you want to rent your home and become a landlord, you have to determine if you will hire a real estate agent to list your home for rent, or try it on your own. If you use an agent, they should have access to resources of professional services to promote your property to the largest number of potential tenants, as well as a renters screening service to screen their credit and rental history.
Then, once you find an acceptable and good renter, you should decide if you want to manage your property yourself, or hire a property manager to take care of it for you. Initially, you will probably pay one month’s rent to the agent for finding the tenant. Then, for a monthly fee, a property manager will field calls from the tenants regarding problems and manage the repairs for you. Be prepared if you decide to take care of any complaint calls yourself. You could end up with a call from a tenant anytime around the clock. Imaging that after you’ve settled in for the evening, and it’s below zero outside and the tenant’s furnace stopped working. You can’t simply say that you’ll figure it out the next day, or ignore the call. You must respond to your tenant quickly. You should have access to at least 2 professionals in each trade. 3 are ideal. If you can’t reach your first furnace person, then one of the other 2 should be available. You need your on-call plumbers, electricians, etc. as well. So, ultimately you have to determine if you have the time, patience and personality to be a property manager or hands on Landlord. If not, you should hire someone who has the time and dedication to properly take care of your property.
So Brookside, Waldo or Red Bridge homeowners in South Kansas City, if you want to see if there is a solid rental market in your specific neighborhood, contact me. Find out what the comparable sales are like in your area, or if there may be a better market for renting your home vs. selling it today.