If I move out of State should I rent out my home?

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Real Estate

Should You Rent Your Home out? Good question...

You find a great job in another state. Do you sell or rent your home?

Think about reasons for maintaining ownership. Do you want to keep the home in case you ever move back? Are you looking for a tax break through property depreciation? Do you want the home as a retirement investment?

On the other hand, are you prepared to be a long-distance landlord? There are other costs involved as well, often running 30-40% of income before the monthly mortgage cost.

If you decide to rent out the home, where do you start?

Get the house in shape, including interior and exterior painting and patching, carpet cleaning, appliance tune-up, ensuring adequate insulation, and fixing what needs fixing.

Think about hiring a property management company. You can research prices in your area, and compare. You can ask your Real Estate Agent they may have a property management team or they may know a company that they can refer. 

What should I ask when interviewing the companies?

Ask about accreditation, customer service, references, screening, experience, vacancy rates, maintenance, monthly reporting, handling evictions, insurance, fee structure, dealing with prospective buyers, inspection of the property, and any special services.

It’s not essential to hire a property manager, but it can make life easier, especially if you move out of the area. Interview at least three companies.