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What To Do If Your Crestview Home Isn’t Selling: Should You Try Renting It?

What To Do If Your Crestview Home Isn’t Selling: Should You Try Renting It?

What To Do If Your Crestview Home Isn’t Selling: Should You Try Renting It?

Has your home been on the for-sale market for 30, 45, or 60+ days? Unfortunately, this is a reality for a lot of sellers in today’s market. Renting out your home for 1-2 years while waiting for the sales market to bounce back can be a wise option. In this article, we’re going to discover the pros and cons of renting out your home, and finding out if it’s a good choice for your unique situation.


Click here to learn how much your home can rent for (Yes, it's a free report!)


Do The Numbers Work?

The very first thing you need to think about before renting out your home is knowing your numbers and understanding expenses related to having a rental property.


Before beginning, you should know at least the following:


  • How much gross rent you can expect to receive

  • How much your mortgage is

  • How much your HOA is

  • Annual maintenance expenses (Typically 1 month of rent on an annual basis)

  • Property management expenses - Click here for our pricing


These numbers are important to know because if the numbers don't pencil out, then you may put yourself in a bad financial situation. For example, if the estimated rental rate is $1900 and your mortgage payment is $2300 then it’s best to keep it on the for sale market vs taking a $400+ loss every month not including other common expenses. The max loss you should be taking is $100-$200, as long as you acknowledge the loss and know that you can float it.



The Good, The Bad, and The Ugly

Having a rental property has good moments and bad moments, here’s the breakdown and what you need to be aware of:


The Good: 

  • You build equity while making a profit.

  • Rent income covers the cost of your mortgage.


The Bad: 

  • Maintenance sticker shock, repairs and maintenance are expensive and can deplete your profits quickly.

  • Tenants may violate leases and have unrealistic expectations.

  • You need to view your home as an investment and make decisions with logical thinking instead of emotional thinking.

  • Tenants are late or don't pay rent at all causing you to cover your mortgage until it comes in.


The Ugly:

  • Although rare, you may have to evict your tenant. This can cost thousands of dollars for the legal process plus the loss of rent. This can cause financial and mental stress to you.

  • Squatters - Yes they exist. With having a rental property, you become a target for people looking to break into a home and stay there illegally. 

  • Bad tenants can destroy your home.


Although it may seem that there is a lot of bad in having a rental property, there is an upside to it that is more common than the cons. There are a lot of inherent risks with having a rental property and I want to be transparent and make you aware of it. Here at Kuntz Property Group, we handle all of the good and especially the bad when it comes to our clients homes. We provide our owner clients with peace of mind and a stress-free rental ownership experience. We’ve been through it all so we know how to handle it all.



Your Home Won’t Be Sell Ready Right After A Tenant

Many Crestview homeowners have the unrealistic expectation that their home will be in the same condition as when they left it even after only 1-2 years, this is very false. With people living in your home for 1-2 years there is going to be wear and tear on things such as flooring, walls, and fixtures. 


You may have to repaint the walls or replace the carpet in order for the home to be listing ready like it once was. 


Conclusion

With the above information, you should be able to make an informed decision on if renting out your home is worth it. Remember, ask yourself:



Still not sure? When you schedule a consultation with us, we go over the numbers with you and ask you questions to better understand your situation. Once you understand your goals and worries, we can help you make the right decision based on your situation. Hiring Kuntz Property Group for Crestview property management is the right choice for landlords looking for a partner to navigate them throughout the entire rental process. 


We want to learn more about you and your situation: Reach out to us for a free consultation or to receive a custom rental analysis! 

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