We have been working with a client who has now decided that their snowbird home will become their only home and now the question becomes what to do with the one in Wisconsin. They have done a beautiful kitchen remodel...have a great attached sunroom overlooking their pool with a deck...a nicely finished lower level...great location and it had been home for many years. They wanted to discuss all their options.
What IF...they rented out the Wisconsin home what did that look like ? Having been landlords and sold single family homes that were taken care of by property managers, we could counsel them from experience...ours and other clients.
Yes, the home would provide additional income and while in southeastern Wisconsin, there are few single family homes for rent, we were able to give them an approximate rental income range. Typically, leases are for not less than one year and no...renting the home furnished is not a plus because it means storage of the tenant's furnishings and that is not a popular long term option in this market.
There is landscaping that must be maintained and a pool besides. Yes, that can be written in the lease and equipment supplied...cross your fingers that is done. OR as the new landlords, you can hire landscape and pool maintenance and decide how snow is handled...a plowing service or more likely, tenant responsibility.
We suggested that they speak to their insurance person to get a well rounded estimate of all their costs. Generally, the Landlord continues to pay the sewer/water bill and of course the property taxes so those expenses along with a property management fee would have to be subtracted from the rental income to get to the bottom line.
The pool is an absentee landlord liability..the "What If's" in terms of accidents have to play in your head. The landscaping that has been lovingly maintained...may not be...Tenants rarely take care of a house they way owners have maintained a home.
The homes in the area are getting record sale prices...when a tenant vacates a property...realistically...there is painting, some sort of repair, cleaning etc. that likely will have to be done if the property is to be put on the market after they vacate. The other option is to continue to rent it out....same clean and fix applies and the search initiated by the property management person/company for another tenant. That may or may mean gaps in rental income while taxes and maintenance costs continue.
If you or anyone you know is considering the options or renting or selling...consider ALL the "What if's" and expenses before making a decision
This has been an informational post brought to you by Sally K. & David L. Hanson, Broker Associates with EXP Realty honored to be of service for all things real estate in southeastern Wisconsin.