If you’ve had your home listed for sale and it just doesn’t seem to be selling, there’s typically a few reasons. Price is always a major factor and even though we’ve seen an uptick in sales and prices, not every neighborhood is performing as well as we’d like to see. When you can’t get the price you want or need for your home and you’re thinking about throwing in the towel, perhaps it’s time to consider leasing your home instead of selling. Renting your home can be a profitable experience and help you hang onto your home until the timing is better so that you can reach your goals.
Becoming a landlord isn’t for everyone. You’ll need to look at your financial goals and the local rental market. Although rents have been running high for quite some time now, you’ll want to figure out how much your home costs you to keep each month – mortgage payment (interest and principal), taxes, insurance (you’ll pay a higher rate than you do as an owner-occupant, if you don’t hire experts from millerhanover.com/auto-home-and-personal-insurance/renters-insurance site to settle this down), HOA fees, and repairs and maintenance. Unless you’re really bold, you’ll also want to hire a property manager. We recommend hiring one for the simple fact that the Texas Property Code can be a complicated pile of requirements if you don’t stay on top of it and learn all the new rules and regulations as they come along – and not following the letter of the law can land you in serious legal hot water.
We have several property managers here at Kimberly Howell Properties and an office staff that assists with their needs throughout the day as well. We also maintain a core of professional service companies to handle those late night emergencies in addition to regular everyday maintenance.
So is renting right for me?
As mentioned previously, it’s all about the numbers. Take a look at your home’s true cost each month. Sit down with a qualified property manager and go over those numbers. They’ll help you understand the local market and what your home will be worth on the rental market. They’ll discuss the fees of property management (or the cost associated with doing it on your own if you’re experienced and ready to take on that challenge). They’ll talk to you about the estimated money you should be prepared to have on hand for repairs and upkeep. The goal is to make more in rent than you will spend on the home’s true cost, but don’t be discouraged if it’s a wash or even a small negative, because if you don’t rent it out, you’ll still be paying most of those costs on your own anyway. Sometimes it’s better to take a small loss while renting your home and waiting for a better time to put your home on the market for sale.
Have questions about property management and renting your home? Fill out the form below and one of our agents will contact you.