At Berkshire Hathaway HomeServices we find that many people considering selling their home wonder if they would be better off becoming a landlord. After all, renting their property means income every month. The fact of the matter is that being a landlord is much harder than people often realize – it is not a simple as sitting around getting rent money. Keep reading to get the facts about what’s involved in renting a property versus selling a property, then contact Berkshire Hathaway HomeServices if you have questions about your options.
Old Homes Are Not Great for Rentals
If your home is older than it is likely that you will be better off selling the home than trying to rent it. Though it may be beautiful, be bursting with character, and have an abundance of curb appeal, it is also likely that you will be making regular repairs. This could include new pipes, a new roof, new appliances, new floors – everything you can imagine. Renters are generally harder on a home than owners so expect that some aspects may need to be replaced more often than if you were living in the home.
The Unit Could Be Empty for Long Periods of Time
It could be that you can find a tenant right away if you listed it for rent tomorrow. Remember that this may not always be the case. What happens if the real estate market in your area unexpectedly changes in the next few years and you cannot find a tenant? If tenants are scarce then it is likely homebuyers are going to be scarce too.
The Wrong Tenants Can Have a Hugely Negative Impact
If you were to choose the wrong tenants, you could end up with a serious mess on your hands. If they do not pay their rent on time, it will be up to you to hound them for payment. If they still do not pay then it will be up to you to evict them. Even if you use a property manager for these tasks, you will be billed for them. Once you finally get a bad tenant out, you may end up with a home that has been trashed and requires substantial repairs.
You Will Have Ongoing Maintenance Costs
You will need to maintain the home more than you did when you lived there. You will need to answer requests from tenants, check on the property, and take care of all maintenance. This can not only cost a pretty penny but it can be extremely time-consuming. Some tenants require little from their landlords but others may call you every time a light goes out.
If you decide to sell your home there is good news for you: Berkshire Hathaway HomeServices is here to help. Just contact us at (310) 373-0021 and let us use our many years of experience to provide the best possible experience and outcome for you.