Are you considering renting out your home? If so, there are a few things you should keep in mind. Renting your home can provide some great benefits, but it also comes with some risks. Here are a few things to consider before making your decision.
Benefits of Renting Your Home
Some of the benefits of renting out your home include:
- Increased income: Renting your home can provide a great way to increase your income. This extra income can be helpful in covering all the costs of owning the home, plus some extra profit each month.
- Asset diversification: Diversification is the key to a strong portfolio of investments, and real estate is always a top-tier asset class.
- Flexibility: Renting your home can give you some flexibility in terms of where you live and when to sell your property.
- Security: Leaving your home empty might attract squatters, so having tenants there is a way of protecting your property from crime and vandalism. Owning rental property also gives you some personal security, since you’ll always be able to move back into the property after properly asking any tenants to leave.
Risks of Renting Your Home
There are also some risks to consider before renting your home. These risks include:
- Non-payment of rent: Not receiving the rent payment despite tenants living in your home is a very real risk of owning rental property. Tenants may not pay rent for a variety of reasons, including financial difficulties, disputes about property maintenance, and more.
- Damage to your property: When you rent out your home, you run the risk of damage being done to your property by tenants or their guests. Your tenants may not take care of the property as well as you would, and this can lead to costly repairs down the road if the damage is not immediately reported.
- Liability: If someone is injured on your rental property, you could be held liable for their medical expenses. This is why it’s important to have adequate insurance coverage when you rent out your home.
- Tenant turnover: Another risk of renting your home is tenant turnover. You may have to deal with the hassle of finding new tenants every few months or years. During times of vacancy, you won’t be collecting rent payments but you are still responsible for making any mortgage payments or repairs.
Quality Property Management in Southwest Florida
As you can see, there are a few things to consider before renting out your home. Weigh the risks and benefits carefully to decide if it’s the right decision for you. To make the decision easier, trust the professionals at Douglas Realty Property Management to handle all the day-to-day services that go along with renting out your property, such as:
- Tenant screening
- Deposits and escrow
- Maintenance requests
Call us at (239) 542-6906 or contact us online to find out more about turning your rental property into truly passive income today!