Making Money Off Your Home: How to Rent Your House

Has your home been on the market for a while, but you still can’t seem to get it to sell? When this happens it’s normal for a seller to get discouraged. Maybe you’ve made a lot of home fixes, your agent has tirelessly advertised, reduced the listing price, and still, nobody seems interested. However, don’t get too discouraged because another option is renting out your home instead! 

'for rent' tag attached to wood model of home

Some sellers have no choice other than to rent it out when their homes won’t sell. Maybe you need to relocate for a new job or there’s a family issue where you need to move to a different state. Even if the money you’re getting from rent isn’t the amount you need, it is still more money than getting nothing from a vacant home and there are mortgage payments that need to get made. 

Things to Consider Before Renting

  1. The first thing to consider is the length of your leave. Are you going to be gone 5 years or will you be gone 6 months and need a home when you return? Either way, consider the length of time you will want to rent and if you plan on returning.
2. If your current home is appreciating or depreciating faster than you expected, you may want to consider renting it out and selling later. Since there’s no way to know for sure which direction the housing market will move in the future, you can make an informed guess if you’re expecting the value of your home will increase within a few years or less. In a downward-trending market, some people want to wait for the next cycle or boom to come and then sell for top dollar.

3. Putting it on the market as a long-term rental is an ideal option for most people. You can get someone who treats it as a home and is willing to stay longer than a year in a lot of cases. The real estate market has forced a lot of buyers to look for rentals and this can work to your benefit.

4. Some sellers find that renting through Airbnb or other short-term rental sites is a good option. Short-term rentals could result in getting more money per night than a long-term rental, but the drawbacks are that you have constant turnover and if you aren’t living close to where the home is you will have to pay to get someone to help manage that rental. Also, you must consider if this is even an option, some states and towns have cracked down on these types of rentals and you may not even be able to do shorter than a 1-month long rental.

5. We know what you are thinking, you are a full-time Mom, Dad, Friend, or Employee, and you don’t want to add Landlord to your list. Consider hiring a reliable property management company. A property manager will not only help vet trustworthy tenants to live in your home and negotiate rents, but they will also be able to hire trade workers if repairs are needed, help when there is a maintenance issue on the property, collect deposits and return deposits, and so much more. Having them address tenant issues instead of you is not only a time saver but can also benefit your wallet. The costs of a property manager usually pay for themselves and more.