Should I Rent My House If I Can't Sell It?

About one out of every five potential sellers we meet with asks the question...."Should I rent my house if I can't sell it?" We're not at liberty to tell anyone what they should and shouldn't do, but below are some questions you should consider before making your decision.

10 Questions to Ask BEFORE Renting Your Home

1.) 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).

2.) Because of the economy, over ten percent of 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.) Will you alert your current neighbors that you are renting the house?

The above questions were part of an article from Steve Harney and the KCM blog. They're great questions and we encourage anyone considering renting to think long and hard about them before making a decision.

Buying vs. Renting? Which is More Affordable?

It's More Affordable to Buy in 98% of Major Markets!!!

Last week, Trulia released their Winter 2012 Rent vs. Buy Index. In the index, they report that:

"After years of home price declines and tightening rental markets, home ownership is now more affordable than renting in all but two of the 100 largest metros – even in expensive real estate markets such as New York, Los Angeles and Boston."

The two metros where renting was more affordable were Honolulu and San Francisco. However, Trulia explains that, even in these markets, buying a home:

"...might make sense for people who plan to stay in their next home for at least five years and can benefit from the mortgage-interest tax deduction."

This rent/buy ratio favors buying more so then at almost any time in history. In a recent article, Forbes Magazine quotes Jed Kolko, Trulia's chief economist:

"Certainly prices have continued to fall nationally, but rents have been rising so this would be the lowest price-to-rent ratio that we've seen."

Bottom Line

It might be time to talk to talk to us about buying a home! We realize that the economy has been tough in the last few years and that many people have had mishaps with their credit, etc. There are some loans for people with less than perfect credit, but you may have to put more money down (it's all based on circumstances, etc). If you need help cleaning up your credit, we have a wonderful connection with a lender and credit restoration company that can work with you over the next year or two to get you ready to buy.

YOU DON'T WANT TO MISS THIS OPPORTUNITY TO BUY A HOME! All good things must come to an end and we don't want to see anyone miss the boat on the best time to buy a home in history (our humble opinion)!


Source: KCM Blog - Steve Harney