Are you looking at moving to a new house and wondering what to do with your current family home? Sure, you could sell… but more and more savvy individuals are now taking the investment route in situations like these. Maybe turning your family home into a rental property is the best thing to do once you’ve found your new residence. If you’re inclined to take this path, here are three things you should keep in mind.
1. You need professionals you can trust on your side
You better get used to dealing with agents! There are lots of them out there and they all want you to think they’re the best at leasing properties for investors. While you won’t have any trouble locating professional real estate agents who would happily take your property under their wing, it can be much more difficult to find one you can really trust. You should start by doing your research online. Sites like Local Agent Finder can give you a real advantage when sizing up different real estate agents. Then you can connect with the one who comes out on top when you compare, allowing you to skip the uncomfortable phase of dealing with numerous agents that aren’t a good match for you.
2. Is now the right time?
Some circumstances don’t give you the luxury of choice. A new job in a distant city, for example, means urgency is a priority. However, if your situation is more relaxed, seriously think about whether right now is the ideal time to be moving and leasing your home to renters. There are a number of factors to consider when making this decision. Some factors are personal (e.g. how your family feels about moving, how far away you’ll be going, and your current finances), while others are external forces, like current rent rates and the health of the property market. You should carefully consider anything that would influence your decision; you may discover that waiting a few months or longer might be a better option than taking action now. And, even if this isn’t the case, at least you’ll have peace of mind from knowing you’ve made a well-informed, calculated decision, rather than a spur-of-the-moment choice.
3. Does it need any work?
Perhaps one of the reasons you’re moving is because your current home doesn’t quite suit your family anymore. Whether you’ve outgrown the space or want more modern facilities, consider that these limitations could also restrict your potential rental revenue. While it may be tempting to rush out of your house and get it onto the market as soon as possible, it could actually work out better financially for you to renovate or add an extension before jumping ship. An extra bedroom or contemporarily styled kitchen can make a substantial difference to the rent you can feasibly charge.
These are just a couple of the things you should be thinking about if you’re considering turning your family home into a rental property. For more thorough and tailored guidance, nothing beats a one-on-one appointment with a property investment consultant.
<p>Has your decision been made yet? Will you definitely be hopping over to a new home, leaving your old one to send rent income your way? What are some of the things you’ll be taking into consideration between now and moving day? Share your thoughts in the comments below.</p>
Image from here.