Should I Rent My House If I Can't Sell It? -303-955-4220

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

A recent study has concluded that 39% of buyers prefer to rent out their last residence rather than sell it when purchasing their next home.

The study cites that many homeowners could refinance and “locked in a meagre mortgage rate in recent years. That low rate, combined with a strong rental market, means they can charge more rent than they pay in mortgage each month, so they are going for it.”

This logic makes sense in some cases. We at KCM believe strongly that residential real estate is a significant investment. However, if you have yet to become an educated investor in this sector, you may be headed for more trouble than you were looking for. Are you ready to be a landlord?

Before renting your home, you should answer the following questions to make sure this is the right course of action for you and your family.

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10 Questions to Ask BEFORE Renting Your Denver Area 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 often during holidays and back-to-school when families with children have extra expenses).

2) Many homeowners can no longer make mortgage payments because of the economy. What percent of tenants 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 more significant in a non-owner-occupied home?

5) Will you allow pets? Cats? Dogs? How big is a dog?

6) How will you 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 physically inspect the property?

10) Will you alert your neighbours that you rent the house?

The Bottom Line is.....

Again, renting out residential real estate has been a significant investment. However, it has its challenges. Make sure you have decided to rent the house because you want to be an investor, not because you hope to get a few extra dollars by postponing a sale.