Should You Lease Your House or Sell It? Some Things To Consider.
Numerous homeowners are opting to lease their home rather lower the price if it is for sale, or sell it at all. I often wonder if they know what they are getting into.
Here are a few things to consider when contemplating becoming a landlord.
The rent. What are home similar to your renting for lately? Is it enough to cover your mortgage payment? If not are you able to cover the difference every month?
If you are leaving the area, you will need to hire a property manager, this can cost 6-10% of the rent payment every month. Have you factored that in to your budget?
Speaking of Property managers, have you interviewed several companies in order to find the best fit? To compare rates?
Listing the property for lease. The property manager will charge a commission to list the property for lease which could be from 50-100% of a full month’s rent. This means that you will have to cover most or all of the mortgage payment out of pocket for at least one month.
These are very important things to take into account when considering your options. In some cases leasing may be the best option, often times lowering the price a little to entice a buyer is appropriate as you can then move on and start the next chapter of your life.
