Thinking of Renting out your
house. Do your homework first!!
Thinking of renting out your house? Do you homework and make
sure you have reserve fund especially if you have a mortgage.
I recently completed a short sale in Bowie for a townhouse. It was rented out
because the owner had to move out of town for a new job. The problem started
almost immediately with the tenants. Within the first month, the tenants
started calling for needed repairs in the house. However, because the owner was
out of town, it became an issue to get the repairs completed quickly. During
second month, the tenants refused to make rent payment and continued to not pay
rent for almost four months. The home owner was unable to make his mortgage
payment because he was not receiving rent. After five months of non-payment of
mortgage, the house had to be sold at the current value to avoid foreclosure. I
have seen this kind of scenario played out so many times with inexperienced
landlords. This can cause serious financial damage and credit damaging
consequences when tenants refuses to pay. As a home owner, if you are thinking
of renting out your house, here are a few things to consider before becoming a
landlord:
-
Ensure you have enough cash reserve to cover the
mortgage payment for at least three to six months.
-
Make sure the house is in good shape before renting
-
Make sure you have the funds to cover repairs when the
need arises
-
Have a relationship with a local handy man or
contractor that you can depend on for repairs
-
Do not make the payment of HOA (or Condo fee) the
responsibility of the tenants
-
Always get a copy of the water bill, even if it is the
tenant’s responsibility (An unpaid water bill can become lien on property)
-
Make sure you get rental license. This is especially
important if you required to go to court for eviction
It is advisable for homeowners/landlords that will be out of
town to hire a property management company to take care of renting the
property. It is very difficult to manage rental property when out of town. Even
with the best preparation, there is no guarantee that tenant(s) will continue
to make payments, or that you as the landlord will not run into problem.
If you are thinking of renting your house because your
outstanding mortgage is more than what your property is worth, there are other
options to consider besides renting. Contact us to discuss your options.
If you are tired of being a landlord and would like to sell your house without making any repairs we have options as well. First, find out the current value using our
home estimator and then contact us to discuss your options.
Keji & Associates of Fairfax Realty is a team of
licensed agents working daily to get homes sold for our clients in Bowie, Upper
Marlboro, Fort Washington
Keji Ogunleye , Associate Broker - Licensed in Maryland & Virginia,
Fairfax Realty, Inc
301-613-2043, keji@metrohomesrealty.com,
www.metrohomesrealty.com
