10 Things To Consider Before Renting Your Home
Do your eyes light up with the thought of keeping your current home and buying a new one? Sounds all well and good if you can afford to do it.
Here are 10 things to consider before renting your home.
- How will it change your financial picture? You need to consult a professional tax person to help you decide what your tax liability will be if you decide to convert your primary residence to an investment.
- Do you have six months of reserved funds? You need to consider that there could be a few months the house could sit vacant while finding a tenant or making repairs.
- Do you have money for major repairs? Most leases state that the tenant is responsible for maintaining the property but it's the owners responsibility to replace the big ticket items like the roof, furnace, hot water heater and appliances.
- How will you find out if the prospective tenant is credit worthy? Do you have a plan for checking their credit or will you take their word when they say, "It's just fine".
- Do you have a plan for verifying their employment and income? Just because they say they make good money doesn't mean they have the money to pay the rent and all their other expenses. Their income could be all commissions with a very little base salary.
- Do you know if there's any restrictions on renting in your neighborhood? What other restrictions do you need to consider?
- Do you have the updated bylaws? If you live in a condo or HOA it's your responsibility as the owner to be sure your tenant abide by the bylaws.
- Will you accept pets? If so, is there a limit on the size, the number or type of pet? How much deposit will you hold?
- Are you hiring a property manager? Will they take care of collecting the rent or just the day to day issues that come up with tenants?
- What happens if the tenant stop's paying the rent? Do you know what the eviction process is for a non paying tenant?
Looking for more information about renting your home? Check out KCMBlog.com "Here are 10 Questions to Ask BEFORE Renting Your Home"