The Pros and Cons of Renting Out Your Old Home
It’s an easy thing to ponder when you’re thinking about moving: Should I rent my old home? There’s a certain attachment to the old home, which makes renting it that much more attractive. There’s also the idea of a steady stream of income that accompanies renting your old home.
But like so much else in life, there are benefits of renting your old home just as there are drawbacks. To help you make the best decision for your unique situation, here’s a look at some of the pros and cons of renting your old home.
Pros of Renting Your Old Home
There are some investors who swear by real estate. Few things in life are sure to appreciate quite like a good piece of property. When you choose to invest in real estate, you’re choosing an investment that’s going to help you build wealth over the long term.
The key with any renting situation is to create enough revenue to cover the principal and interest on any existing loan as well as your taxes, insurance, repairs and maintenance. That’s a tall order. But keep in mind that even if you don’t make enough in rent to cover all of those expenses, you’re still building equity and maintaining an asset that will almost surely appreciate in the years to come.
Rental properties may also present certain tax benefits, depending on the specific situation.
Cons of Renting Your Old Home
Okay, so it’s definitely not all upside. There are a number of cons, too, and each should be carefully considered before you jump into renting out a property. First of all, you’re still on the hook for maintenance and repairs. This can be both costly and inconvenient. You can find a go-to source for maintenance and repairs, but this only increases the expense over doing it yourself.
There’s also the issue of occupancy. It’s great to see rent payments roll in when the property is leased — but what about when it’s not? You’ll still be responsible for mortgage payments, taxes and insurance, but you won’t have any of the revenue to help offset those costs. Not everyone can afford to cover these expenses in the absence of revenue.
Finally, there’s the hassle of finding the right tenants. You certainly don’t want to get caught up in a situation where your renters are making late payments or damaging your property. But that can happen without a comprehensive application process.
Mid Atlantic Van Lines: Your Moving and Storage Company
Is renting your old home right for you? Only you can answer that question. Take a look at your financial situation and take the time required to weigh these pros and cons before making a decision.
And, when you need a moving and storage company to help with the move to your new home, remember Mid Atlantic Van Lines. We can make life easier by taking care of your belongings and ensuring they arrive safely at your new abode.
Contact us today about serving as your moving and storage company.