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Renting out your existing home offers multiple benefits as a short-term strategy in response to high mortgage rates and housing market uncertainty. This guide explains how temporarily becoming a landlord enables you to:
- Keep your home with a low fixed-rate mortgage
- Generate extra income by renting at current high rates
- Avoid selling for less in a softened home price market
- Ride out interest and price fluctuations until the market stabilizes
- Reoccupy or sell later once conditions improve
With a licensed property manager, renting your home can be a smooth and profitable process. The Kenna Real Estate Group does not manage rentals; we can refer you to a licensed Colorado property manager. Discover why now may be the perfect time to enter the landlord game.
Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
Benefits of Continuing Homeownership
By renting out your current home instead of selling, you can:
Keep Your Low Interest Rate
If you purchased when rates were under 5%, keep your property and a favorable fixed-rate mortgage.
Avoid an Expensive New Loan
Current mortgage rates above 7% mean significantly higher payments on a new home purchase.
Build Equity Over Time
As you pay the principal, you build equity that grows as home values appreciate.
Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
Use Tax Deductions
Deduct mortgage interest, property taxes, insurance, and maintenance costs.
Earn Passive Income
Collect monthly rental income that can offset your mortgage payment and expenses.
Preserve Opportunity
When the market improves, you can move back in or sell at a potential price premium.
Renting out your owned property lets you wait out challenging conditions while optimizing savings and flexibility for the future.
Maximize Returns by Renting at Peak Rates
The upside to current high mortgage rates is that rental prices have also increased nationwide. With demand exceeding supply, landlords can charge premium rents.
Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
Average national rent growth over the past year has reached:
- 12.3% for single-family homes
- 7.6% for multifamily units
Rents are projected to continue rising through 2023 due to:
- Rental solid demand as rates keep first-time buyers sidelined
- Low rental property vacancy rates
You can capitalize on peak rental yields by renting out your home now.
How to Determine if You Can Cash Flow Positive
Crunching the numbers is crucial in deciding if renting your home makes financial sense:
- Research going market rents for your property type and area
- Estimate your mortgage payment, taxes, insurance, maintenance
- Target rent that exceeds your total expenses by a couple of hundred dollars
- Consider hiring a property manager at 8-10% of rent to oversee
If rent expenses = positive cash flow, renting out is likely a smart move.
Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
Hire a licensed property manager
The Kenna Real Estate Group does not offer property management. Managing a rental for someone else is licensed brokerage activity in Colorado, so if you decide to rent out your home, hire a licensed property manager. We can refer you to one, and when you are ready to sell later, we can help with the sale.
Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
Rent Your Property Stress-Free
Rather than sell your home in today’s changing market, renting provides flexibility and passive income. A licensed property manager can take the landlord duties and risks off your shoulders, and the Kenna Real Estate Group can refer you to one.
Contact Kenna Real Estate Group today to set up your free rental assessment. Discover the ease and profitability of temporarily renting your home until the market improves.
