Are you thinking of making a move and wondering if you should rent or sell your home?
Renting out residential real estate historically is a great investment. However, it is not without its challenges, and those challenges have only increased due to COVID-19. The rules have changed and there’s no telling how they might change in the future. Before making a decision about whether to rent or sell your home, be sure you understand these rules. We recently interviewed a real estate attorney and got an update on the latest landlord and tenant rules. You can check that out HERE.
However, if you have no desire to actually become an educated investor in this sector, you may be headed for more trouble than you were looking for. Are you ready to be a landlord?
To Rent or Sell…
Before renting your home, you should answer the following questions to make sure this is the right course of action for you and your family.
12 Questions to ask BEFORE renting your home
- How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).
- Because of the economy, many homeowners cannot make their mortgage payment. What percentage of tenants do you think cannot afford to pay their rent?
- Have you interviewed experienced eviction attorneys in case a challenge does arise?
- Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
- Will you allow pets? Cats? Dogs? How big a dog?
- How will you actually collect the rent? By mail? In person?
- Repairs are part of being a landlord. Who will take tenant calls when necessary repairs come up?
- Do you have a list of craftspeople readily available to handle these repairs?
- How often will you do a physical inspection of the property?
- Will you alert your current neighbors that you are renting the house?
- What are the tax consequences if I decide to sell my home after renting it for a number of years?
- What will the cost be if I decide to hire a property management company to handle the rental for me?
If You Decide to Sell
If you decide you want to sell, now is the time! We are currently in a seller’s market so sellers are able to command top dollar for their homes. The Shannon Jones Team can help you market your home to maximize your selling price and minimize your selling time. There is no guarantee that prices will remain high or that mortgage rates will remain low. So now is a great time to sell your home and to upgrade to a larger or more updated one. For more information on selling, we’ve gathered some helpful articles about selling your home below. You can also fill out the form below or give us a call at 562.896.2456 to discuss your individual situation. We can help you determine the value of your home and whether or not selling is right for you.
- Selling a Home in the Fall
- For Sale By Owner – Why Not To Do It
- Is Now The Right Time To Sell?
- Safely Sell Your Home During COVID-19
A Word of Caution
When deciding whether to rent or sell, it is important you understand what selling your home during the pandemic looks like. If you rent out your home, then decide you want to sell later on, and we are still under the current rules, selling your home could be difficult. Remember, tenants do not have to let anyone in their rented home to see the property. And you as a landlord are not allowed to threaten them with eviction because of this. Courts are still heavily delayed due to the pandemic, so going to court to deal with tenants could be a long way off. If you decide you want to rent not sell, it is best to make sure you are making a long-term decision.
If you haven’t watched our interview with a real estate attorney (mentioned above) yet, it is important to do so when making the huge decision to rent or sell your home. That interview is available HERE.
Make sure you have decided to rent the house because you want to be an investor. Don’t decide to rent because you are hoping to get a few extra dollars by postponing a sale. The market is hot right now, so if selling is in your future at all, now is the time to do it. Deciding to rent or sell your home isn’t always an easy decision so it’s best to speak about it with an expert. The Shannon Jones Team is well versed in the Long Beach real estate market as well as the surrounding areas. We’d be happy to set you up with a virtual appointment to discuss your options.
We hope to hear from you soon!