Via Steve Harney from Keeping Current Matters:
Should I Rent My Louisville, KY Home If I Can't Sell It? - This may be the question you're asking yourself if you are currently considering selling a home in the Louisville area market. Many cities are seeing their rents skyrocketing and more and more homeowners are seeing that they may be able to get great rental income now and perhaps wait until house values increase even further before selling.
However BEFORE renting your home, you should answer the following questions to see if you are ready to become a landlord:
1.) How will you respond if your tenant says they can't afford to pay the rent this month because of more pressing obligations? How will you cover the mortgage then?
2.) Because of the economy, many homeowners can no longer make their mortgage payment. What percent of tenants do you think can no longer afford to pay their rent?
3.) Have you interviewed a few experienced eviction attorneys in case a challenge does arise?
4.) Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
5.) Will you allow pets? Cats? Dogs? How big a dog?
6.) How will you actually collect the rent? By mail? In person?
7.) Repairs are part of being a landlord. Who will take tenant calls when necessary repairs arise?
8.) Do you have a list of craftspeople readily available to handle these repairs?
9.) How often will you do a physical inspection of the property?
10.) How will you screen potential tenants?
Renting out residential real estate historically is a great investment. However, it is not without its challenges. Make sure you have decided to rent the house because you want to be an investor, not because you are hoping to get a few extra dollars by postponing a sale.
Sean S. Williams
Licensed Broker, Realtor®, ABR®, e-Pro®
1st Time Buyer & Relocation Specialist
of Louisville, Kentucky
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