Is Renting Your Home an Option When You Can't Sell it?

This might be you, or it might be you planning ahead, but what happens if you have been trying to sell your home with no luck? What do you do if you have to move but your home has not sold, or your home isn't worth what you paid?

Has the thought of renting your home crossed your mind? It may be a less frightening option than you think.  

Here are a few things to consider:

• First, establish that you can rent your home. Check with your homeowner's insurance company to make sure that you are covered in the event something happens and you need them. You might need to switch your policy for the correct type of policy that specifically deals with rental properties. Check to see what other similar homes are renting for in your area and how it compares to your mortgage costs per month. Then, investigate the cost of your new location. Can you afford to move without selling your home?
• Second, does your personality allow you to be a landlord? Can you hold up emotionally if there are stresses from vacancies or repairs?
• Consider hiring a professional to handle part or all of this. Are you the type to put an ad in Craigslist for instance, screen for a tenant and be your own property manager? Hiring a real estate agent can take some of this off your plate. You can hire an agent to create an ad, screen for acceptable tenants and draw up a lease. You can also hire a management company to handle the day-to-day needs of the house and tenants. If they have a plumbing leak for instance, the tenants would call the management company instead of you.  This works especially well if you are moving completely out of the area. 

The idea of becoming a landlord makes a lot of sense in some cases. Rents are rising and home values have dropped to the point that waiting to sell might be your best option. There are a lot of laws that cover tenants' rights and discrimination, so I would consider seeking professional advice even if you decide to tackle it yourself. Letting your house sit empty for months is not always the best decision. Let me know what you think. If you have a question, I am happy to answer it.