Pros and cons of turning your home into a rental

Category: Housing

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Are you a homeowner who has thought about potentially renting out your home to a tenant? Being a landlord can be a rewarding experience, and while there are a lot of benefits to consider, there are also some disadvantages to think of as well. Maybe you’re ready for a change of scenery, but you’re not quite ready to sell your home yet and you need a way to cover two housing payments. Or perhaps you want to look at it as an investment and a way to have some extra money rolling in each month. As you weigh your options, be sure to consider some of the following:

Pros

You can keep your home

Making the decision to sell your home is a big one, and not to mention, can be a lengthy and frustrating process. But by renting out your home, moving doesn’t necessarily have to mean putting your home on the market. Knowing that your home will be there and you could always move back when your tenant’s lease is up can be a comforting thought.

You can make good money

There’s a good chance that the average price to rent the same type of home in your area will be higher than your mortgage. This means that you don’t only get your monthly mortgage covered each month, but you’ll probably make some extra on top of that, and it could be nice to have that extra income flow. It’s even better if your home is paid off in full.

You don’t have to worry about a huge move

Not only is selling a home a huge ordeal, but so is moving. If you’ve got a big home with a lot of furniture, in particular, preparing for a big move can be stressful and expensive. It can be especially burdensome if you’re moving far away, or if you’ll need to get rid of a lot of stuff anyhow because the space you’ll be relocating to is set up completely differently. If you opt to rent your home furnished, you don’t have to worry about moving it. However, this can also be considered a disadvantage to some (see our “cons” section on the next page).

Selling can be easier

If you do decide to sell your home eventually, selling it could be a lot easier if your tenant eventually wants to become a homeowner and doesn’t want to move. By simply selling your home to your tenant, you can possibly skip the entire house listing process altogether, which save you a lot of time and money.

 

Continued

Tags: investment property, moving, renting a home, selling a home

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