Many seller's who have been unsuccessful with selling their home, decide to rent. They see renting as a better option then doing a price reduction. For some this may be a good idea, but for most--not so much! Why? Well below are some questions to ask before deciding to move in that direction.
1. What happens if the tenant stops paying the rent?
2. Do you have an eviction attorney?
3. How much will your homeowners insurance premiums increase because of the liability of a non-owner occupant?
4. Will you allow pets?
5. How will you collect the rent? Mail? In person? Paypal?
6. Will you be available 24/7 for repairs?
7. How will cover the cost of unexpected repairs as well as maintain your new residence?
8. How often will you do a physical inspection of the property?
Renting real estate can be a good investment, but it's not without a lot of challenges. Make sure you have decided to rent the house because you want to be an investor, not because you are hoping to get a few extra dollars by postponing a sale.
Excerpts from Should I Rent My House If I Can't Sell It? by KCM Crew 3/04/2014