The Benefits of Renting Out Your House in a Down Market

With the failure of the housing market to see much in the way of signs of recovery, many would-be sellers are turning to renting. This was certainly a possibility in the 17-month period in which we had our home on the market; one that we considered at length. While we chose not to pursue this course of action for our particular property, we definitely saw some merits in the option.

Leaving the Light On

If your plans include moving to a new location before your home is sold, renting could be a great way to keep your home occupied, maintained, and "lived in" while you're away. It can be important to ensure that you get the right renters in there first though, otherwise you run the risk of incurring costly damages or an ill-maintained home.

In many portions of the country however, having someone in what would otherwise be an empty home can help to conduct general maintenance like running the water and HVAC systems, watching for leaks, and keeping an eye open for other interior and exterior repair issues that might crop up. And in doing so, their presence could keep intruders or thieves away and from doing severe damage to an unoccupied property.

Extra Insurance

Speaking of unoccupied property, did you know that most insurance companies will charge extra for unoccupied homes and that some won't cover them at all? While having renters in your home will likely result in your having to bump up your homeowners insurance policy, it could still cost you less than if no one was there at all.

Extra Income

Probably the greatest, as well as the most obvious benefit of renting your home, is that of extra income. Not only might you be able to cover the mortgage in the process, but your rent could help you pay for things like property taxes, utilities (if for some reason the renters aren't paying them), upkeep and repairs, and might even make you a profit.

Rent-to-own

After moving in, your renters might find that they fall in love with your property. And while they may not have the ability to buy at that moment, they may be able to get their situation straight while they are renting.

This could be a great time to consider a rent-to-own style option. Your renters could go under contract while still living there, which could give you some peace of mind while earning you extra income, and could allow your renters to start settling in and taking some ownership in the property before they officially own it.

A Market Swing

While at this point, it's hard to say what the real estate market is going to do during the next several years -- or even months for that matter -- it's hard to imagine it going down too much more before things bottom out. Though it's not guaranteed, in the time while you are renting your home, the market in your particular area could begin to turn around. This means that home prices might start to go back up so that when you put your home back on the market, your chances of selling, or even getting a higher price, are better.

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Disclaimer:

The author is not a licensed financial, legal or real estate professional. The information provided in this article is for informational purposes only and does not constitute legal, real estate or financial advice. For such advice, readers should consult a licensed financial advisor, lawyer or realtor. Any action taken by the reader due to the information provided in this article is solely at the reader's discretion.