The housing market is tough for sellers. Foreclosed properties are piling up and banks need to discount the properities in order to sell. Lets face it, if you want to sell today… you have to sell at a bargain.
Many homeowners don’t realize that there is a boom in the rental market. Thats right! Every foreclosure produces another tenant. First time buyers that would normally buy a house… are waiting. Thats more renters! Vacancies in Los Angeles for RESIDENTIAL properties are low. So, why not turn your house into an investment?
There are a number of benefits to renting your home. Rent can often cover the mortgage until the housing market returns. You can report losses against your income. Historically, rental properties have been one of the best investments. After all, where else are you going to invest? Atleast you know your house is not a Madoff Ponzi scheme! You can always move back into the house in the future.
What are the drawbacks of renting your home? You must first prepare yourself to rent out your home. It is now an income property. Tenants probably aren’t going to care for the property the same way you did. That is okay as long as you have an adequate security deposit. Are you ready for calls at midnight from your tenant? If not, you probably want professional management.
Landlords must also prepare the home for a renter. The heater must work. Proper smoke detectors must be installed. Trip and fall hazards should be removed. The house should be empty and clean. Insurance may be an issue. A call to your insurance agent is a must!
The big issue is LAWSUITS. There are a number of ways landlords get sued. Discrimination, mold, trip and fall hazards, etc… My suggestion is to hire professional management. For approximately $150 per month, a professional management company should prevent many of the potential lawsuit scenarios and take care of the midnight maintenance call.
MacFarlane Real Estate, Inc. is always looking for new clients! Give us a call to discuss renting your house.