If you own your current home and are interested in buying another, you may have considered keeping your current home (instead of selling it) and renting it to tenants. It can be a savvy investment decision, but the prospect of becoming a landlord is intimidating for many homeowners!
When faced with this decision, we encourage our clients to consider a couple of things. First and foremost, what is motivating the decision? Sometimes the homeowner is “underwater” on their current home and owes more than the home is worth, so they wish to wait a few years before selling in hopes of the home appreciating in value. This is especially common for people who bought in 2006-2008 at the peak of the market. Other times, the homeowner is in a strong financial position and is comfortable with the costs associated with becoming a landlord and can comfortably carry two mortgages (for both homes) at once.
We also encourage clients to consider the “rentability” of their place. Is it located in an area with a strong rental market? Is it move-in ready for tenants and are you comfortable making any necessary repairs? If you have any questions, your EveryHome agent will be happy to provide you with more information.
For clients without landlord experience, we encourage them to consult with a property manager or a licensed real estate agent for assistance. A real estate agent will market your rental property, assist you with finding quality tenants, and provide you with resources for doing background and credit checks for a reasonable fee. If you’re interested in learning more information, be sure to reach out to us at (215) 699-5555.