Take These 3 Considerations Before Renting a Home

Corey Dutton's picture
Renting a home

Sudden life changes, the purchase of a new home, a job relocation, and other life events can make renting your home an option. Before you decide to rent your primary home, consider several things first.

Expenses and rental listing fees, property management fees, and ongoing maintenance. If you want a property manager to take care of all of the hassles, get ready to take 12% right off the top of your rents. Also, make sure you have enough money set aside to cover any unforeseen repairs or maintenance-related issues. If you have another home, now you will have 2 homes to maintain.

Damage to your home: Renters don't respect your home as much as you do, and will cause damages. Those new wood floors you installed last year will likely be destroyed after a year of renting. Carpet is also a common item that will need replacing after renting your home.

Vacancies or No Pay Renters: Factor a 10% vacancy rate into your numbers when calculating your rental revenues. Also, you may sign a lease with a renter that is a slow payer, or even a no payer. Depending on the eviction laws in your State, it could be hard to get a deadbeat renter out, and it may cost you money in both lost rents and legal fees.

There are other pros and cons of becoming a landlord. Before you decide to rent your home, consider all of the factors involved, and not just the 3 considerations listed above. Renting your primary home is not an easy task, and is a big commitment of time and energy, so make sure you have considered everything before you do.

Corey Dutton
Hard Money Lender / Salt Lake City, UT
Private Money Utah
Office (435) 565-1768
Mobile (435) 655-1190

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