For many people who cannot or don’t want to sell their home in this depressed market, renting it out can be a viable option. People in this situation have lots of company – it’s even reported that the savvy investor will rent out their homes if they fail to get a bid for it they’re willing to accept. If you are one of the many people who are in this situation, consider renting your home — it can lessen the financial burden, and you might be able to turn a small profit.
Circumstances prompting the possible renting of your home include:
- Living in another location temporarily
- Cannot sell house for acceptable price
- Rental Income provides good cash flow
Pros and cons of renting out your home include:
- Keep property to sell later at a better price
- Rental income covers mortgage, taxes, insurance, etc
- Tax breaks offset rent or other income
- Business is good… people are always looking for houses to let in Liverpool
- You are the landlord
- Tenants may damage your property
- Could be taxed on gains if you later sell
Remember this: renting a home will come with headaches and problems. You’ll still need to maintain the property or pay someone else to do it for you. You’ll also need to check with your home insurance company to make sure you are still covered for damages while renting your home. If not, then revise or change your coverage.