Should you rent your house out? Every day, millions of landlords rent out houses to good tenants. With proper planning and preparation, you can minimize the hassles and turn your home into a profitable venture. If you think any of these points apply to you, you may want to consider renting out your home.
- Your primary home, while a necessity in life, is not typically an asset or investment. An asset makes you money. A liability costs you money. By renting out your home, you transform a liability into an asset.
- You can hold onto your property while rental income pays down your mortgage. Over time, rental property values (hopefully) will climb and build your wealth. If you can rent out your house for more than your monthly expenses, you will also experience additional monthly cash flow. That’s the goal for all potential landlords—and what we at BiggerPockets want to help you achieve.
- Start your investment career with no additional costs. Renting your property could be the first step in a tried-and-true method for building wealth. Many real estate investors start this way—renting out their homes as they upgrade to bigger or better houses.
- Retain the possibility of returning to that home. This is especially helpful if you’ve been forced to move quickly because of a temporary job relocation.
- Property management companies. If you chose to rent out your house but feel you really don’t have the time to deal with screening applicants, taking care of maintenance issues and some of the other issues that arise from renting a home, there are some great property management companies that for a monthly fee will take care of all of the hassles of being the landlord. Just sit back and collect that check every month.
If you need help finding a new home to buy while you rent out your current one, I’d be happy to help – give me a call today!