05 Sep Should You Rent Out Your House While Trying to Sell It?
The Pitfalls of Renting a Home That You’re Selling
When your home has been sitting on the market for a bit, it can be tempting to put it up for rent. While this plan has the potential to work well for some homeowners, it can be damaging for others. Below are the benefits and pitfalls of deciding to rent the house that you’re selling.
What are the benefits of renting your house out?
The primary benefit of renting out a house that you’re selling is rent. When you rent out your home, the added income from tenants can help you pay for your mortgages. However, it’s worth noting that you could lose money in this endeavor as well. Before making the decision to rent out your home, you should take into consideration all factors that will affect your finances both positively and negatively.
What are the drawbacks of renting your house out?
Unfortunately, there are more drawbacks than benefits to renting your home out while you’re trying to sell it.
Your home could sell for less than you’d like
If you decide to rent out your home, it will likely spend an even longer amount of time on the market, thus lowering its value.
You won’t be able to show the house on a whim
If there are tenants in your home, you will only be able to show the home at particular times. Additionally, there will be added pressure on tenants to keep the home staged and clean at all times.
Your renters will have to be ready to leave when a buyer comes along
It’s difficult to find tenants who are willing to leave on a whim. It’s perfectly legal to rent out your home while trying to sell it, but you have to let your tenants know. If you are renting to college students or travelers, this plan could work out nicely for you. If you’re renting to someone who is looking for something more permanent, you will likely have a hard time. You also have to make sure your renters will keep the place clean and staged. This means they won’t be able to personalize the space much.
Are there alternatives to renting out your home?
The better alternative is to rent for the short term with a site like Airbnb. This means you’ll have people who are only staying for a short amount of time, which allows you to show your home when they’re gone and gives you a motivator to keep the home staged and beautiful.
The decision to rent your home while selling it is a big one that shouldn’t be made lightly. Make sure to weigh all of your options before making the decision to rent out a home that’s on the market.