Purchasing a new home can be an exciting milestone especially if you’re considering to a bigger and nicer home. One of the more common questions that realtors get is whether homeowners should sell or rent out their old homes. With recent increase in property management rental prices, the most feasible thing to do is to rent out your old home. But will that make sense for you?
A lot of factors come into play when renting out your home. You can rent your home at a good price that justifies the headaches that it causes to its tenants. But how can you set the appropriate rental price for your old property? One way is to know more about the rental prices in your area and use that as a basis.
Why Should You Rent Out Your Home?
There are many benefits to renting your home and getting passive income tops the list. The second most popular reason is the fact the doing so allows you to wait for the value of your home to appreciate. The market has seen an increase in rental prices over the past few years to bolster your passive income from rent.
But then again, there’s also the negative side to renting homes. If this is the first time that you’re doing this, then you might not know how difficult it is to find tenants and handle evictions, not to mention pay for every property management cost and maintenance repair. But then again, there’s nothing that a property manager can’t handle.
Why Hire a Property Management Company?
According to experts, it is wise to hire a property manager to help you out. They can handle every issue with the property for a very nominal fee. On the average, property management companies charge 10% of the monthly lease for one single-family residence.
You may even find a quality property manager who is willing to take lower than the usual 10% fee. Just be sure that you look for a property manager who can sell your property well, while also efficiently handling maintenance works. They should also be good at screening tenants and showing around the property. But more importantly, they must have good connections with eviction lawyers and know how to be fully compliant with the local real estate laws.
How to Hire Property Managers
When hiring property managers, you have to check a lot of things. The first would be their reputation. Know how long the property management company has been providing services and how successful they have been so far. Property management companies keep metrics such as tenant retention rate, an average length of stay, and vacancy rate, among others. Ask them about those. Hire a company that can help you in the key areas of renting out your old home to a point that it becomes really profitable for you to keep it.