With the leaves turning vibrant shades of red and orange, the weather getting cooler and winter around the corner, I've been getting more phones calls about what to do when your home is on the market and it's not yet sold.
If you're in the same situation and your home is for sale and not selling, it's time to consider renting it out. Here's why.
1. Winter can be slower for home sales
Of course, every town varies a bit but winter can be a slower time for sales. By wintertime, most families have settled into the school year and are reluctant to make changes at that time, unless absolutely necessary. Depending on the economic climate in your area, some companies slow down their hiring in the winter also. There are still buyers out there, just less of them, so price and condition are vitally important.
Or maybe it is time to go to Plan B and consider renting out your home.
2. Winter is an unfriendly time for empty homes
At the same time, and especially with our variable weather patterns in the Baltimore area, it's really nice to have someone overseeing the home, clearing the leaves and/or snow, making sure there are no leaks or other issues that can turn into disasters if they aren't taken care of immediately.
In fact, that is such a regular occurrence that insurance companies have rules about insurance coverage depending on whether your home is unoccupied or vacant and for how long (see How An Empty Home Could Kill Your Insurance).
So, if you have already made your move and your old home is now sitting vacant, considering the option to rent it out may bring you some needed peace of mind.
3. Renting out your home costs less than carrying an empty house
Even if you decide to take your home off the market until the spring to reassess how to sell it, if you've already moved on to another house and location, you still have an empty home on your hands and drawing down your back account. By renting out your home, you have the benefit of rental income to help offset mortgage payments and other costs associated with carrying that vacant property.
Though rental income may not cover all of your costs, it certainly will cover some of them.
4. What's involved in renting out your home?
You'll want to speak with an expert who will help price your home as a rental. Ideally, this expert will have a strong relationship with a property management company to help simplify the role of being a landlord and ensure you are in compliance at all times. An experienced property manager will assess the current condition of your home and help you prepare it to be rented out (see A Day In The Life Of A Chesapeake Property Manager).
Here are a few resources you'll find helpful:
- What Are The Risks Involved With Being A Landlord?
- Chesapeake Property Management Vs. Other Property Management Companies
- Should I Sell My Home Or Should I Rent It Out?
Yaffe words of advice if your home is not selling
As CNBC said during the economic downturn (paraphrasing Johnny Cash), "sometimes you have to wear the cleanest dirty shirt in the closet." Renting out your home does come with risk and may not be perfect, but it may be the best option for you right now.
With 22 years of experience in the real estate business, Yaffe Real Estate can help you weigh the pros and cons and ease any worries or concerns you may have about renting out your home. We can handle the compliance, marketing and the management of the home while you move on with your life. We have experience, knowledge and stability to give you "peace of mind" and will help you competitively and appropriately price your home.
Is your home for sale and not selling? Let me know what questions you have about whether to rent it out or not.
