The Accidental Landlord
In today's market sellers are finding that more buyers are looking to rent than buy - even with interest rates and home prices as low as they as they are. One of the last things our sellers have on their minds is being a landlord. Yet, here they are faced with owning a home and having to move out of town for their job. While this can actually be a good thing for a homeowner - there are a few points to consider before renting out that home.
- When a home owner leases or rents their home it is no longer their primary residence. This affects real estate taxes, property insurance and could even affect their mortgage.
- HOA restrictions may prevent or limit the lease or rental of a home.
- If the seller received any federal monies ($8,000 tax credit, etc) there may be paybacks required.
- Securing a mortgage on the new residence and/or refinancing the old residence may present additional complications.
Need to be sure before you rent or lease your home?! Contact a REALTOR, as well as a tax attorney and your home insurance company prior to committing or advertising your home for rent or lease!