Are you ready to move on but not quite ready to say goodbye to your current home? Renting it out for a bit allows you to hold on to it for a while and possibly gain some extra income. It’s not a simple process, though, so anyone thinking of heading down this path should consider several important factors. Know the answers to the following questions before diving in.
1. How Do You Plan To Find Renters?
Not all tenants are the same. Many of them are lovely. They pay their bills on time, keep the place clean and respect the neighbors. Then, there are others. The ones that get behind on their accounts and care little about maintaining the property. How do you tell the difference? You ensure that all possible residents fill out an agreement and undergo thorough screening. Look at background and credit checks, understanding if funds are available and personal history demonstrates good character.
2. Who Will Care for the Property?
What do you plan to do when something breaks? Do you want to deal with the issue, or do you prefer someone to handle it for you? You may want to hire a reputable property management company Columbia MO to work as your in-between and save you the grief of finding maintenance specialists or tenant concerns.
3. Do You Have an Emergency Fund?
There may be months that the place remains vacant. You must still cover the costs. Therefore, keep a savings account flush with enough for three to six months’ rent.
4. Is Your Community Open to Rentals?
If you live within a residential neighborhood with a community development district (CDD) or homeowners association (HOA), verify that rentals are allowed. If they are, be sure to file paperwork for approval. Complete requirements early to avoid any financial issues down the road.
Renting can offer many benefits, but it also has responsibilities. Prepare now to help make the process smoother.