Thinking about selling or renting out a home in Salt Lake? If you have recently moved into a new home, selling your house doesn’t have to be the only option available to you. To see if finding a tenant to rent the property could be a solid choice for you, let’s go over what homeowners should know about selling vs renting out a home in Salt Lake.
Short-Term or Long-Haul
When it comes to the average homeowner, one of the biggest deciding factors regarding renting a property is finding out if their financial situation will allow for smaller monetary gains on a lengthier timeline.
A simpler way of putting this is to see if you can manage not receiving the large influx of capital from a traditional home sale by carefully examining your monthly budget.
Renting a home means investing money upfront to prepare for a tenant, maintaining the property appropriately, and profiting from the slow trickle of cash over time. If you find yourself in a situation where the property’s mortgage is paid off, this helps free up overhead that would otherwise be hampering the profitability of the rental property.
Buyer Wants and Needs
Deciding if renting out a home is worthwhile also depends on the rental property’s proximity to locations that are desirable to the tenant you’re looking to attract.
If you’re renting a property in a metropolitan area, access to mass transit could end up making or breaking your rental potential. Also consider that while families certainly do rent properties, the likelihood that access to a specific school district will make or break a rental deal is substantially lower compared to a family looking to purchase a home.
Every renter or buyer will always have their own set of requirements from their chosen domicile, but renters are generally looking for a property that provides more convenience during their time staying there. A buyer is more likely to demand improved privacy – away from the hustle and bustle.
When selling a home, your responsibilities to that property and buyer end once the transaction is closed. Renting a property comes with additional concerns that you have to be ready and willing to address.
Managing a rental property, of course, means dealing with tenant concerns and repairs in a timely, professional manner. Anything and everything that could come up between you and the tenant needs to be laid out using plain language in any rental agreement.
You should also be prepared to research and stay up-to-date on any local laws, ordinances, and codes that dictate your responsibilities as a landlord. It’s also worth consulting with a local attorney on rental property law if you feel uncomfortable with upholding this requirement, or find yourself in a precarious scenario.
Renting Isn’t Permanent
A final important point to keep in mind is that the choice to rent out a property now does not mean you’re required to rent out the property forever.
If you feel that the rental situation is not working out for you, refer to your local rental laws and your rental agreement to discover what time period you are required to provide a tenant prior to their vacating the property. There is always the option of leasing the property to the owner if they feel they would like to continue living there.
Make it clear under the written conditions of the lease agreement that you are no longer handling the normal responsibilities you did as a landlord, and are only there to hold ownership over the property while the tenant is paying it off and living there. You may find that bringing this option to your tenant is appreciated rather than simply giving them notice and eventually kicking them out in order for you to put the home on the market.