Should I Rent My House? What Hampton Roads Homeowners Should Consider Before Becoming a Landlord
Maybe you’re moving but aren’t ready to sell.
Maybe you’ve purchased another home.
Perhaps you’ve wondered whether keeping your current property could become a long-term investment.
Whatever the reason, you’ve started asking:
“What if I rented it?”
Before putting a “For Rent” sign in the yard, there are several things worth considering.
First Question: What Could Your Home Actually Rent For?
Not what you’d like to receive.
Not necessarily what your mortgage payment is.
And not simply what an online estimate says.
Look at the current rental market and comparable properties.
Location, property type, size, condition, amenities, time of year and competing inventory can all influence rental value.
A realistic rental analysis gives you a much better foundation for making the larger decision.
Then Look at the Expenses
Suppose your home could rent for $2,500 per month.
That doesn’t mean you’re making $2,500.
Consider expenses such as:
- Mortgage
- Property taxes
- Insurance
- Association fees
- Routine maintenance
- Larger future repairs
- Vacancy
- Property management
- Turnover expenses
Also consider whether your current insurance coverage is appropriate if the property becomes tenant-occupied. That’s a conversation to have with your insurance professional.
Is Your Home Ready for a Tenant?
Before renting, look at the property through a different set of eyes.
A prospective tenant isn’t looking at the home with the same emotional attachment you may have.
Things you’ve learned to live with may stand out immediately.
Consider the property’s:
- General condition
- Cleanliness
- Paint
- Flooring
- Appliances
- Plumbing and electrical items
- HVAC
- Exterior
- Landscaping
- Safety-related items
You don’t necessarily need to renovate everything.
The objective is to determine what should reasonably be addressed before offering the property for rent.
Are You Ready to Be a Landlord?
This question is just as important as whether the house is ready.
Being a landlord means entering into a business relationship with a tenant.
That brings responsibilities involving leases, deposits, maintenance, documentation, notices, accounting, Fair Housing requirements and Virginia landlord-tenant law.
It also means dealing with things that don’t happen on your schedule.
The water heater doesn’t care that you’re on vacation.
Do You Want to Manage It Yourself?
You have choices.
Some property owners enjoy self-management and do it successfully.
Others want to own the investment without managing the day-to-day operation.
Professional property management can handle responsibilities such as marketing, applicant screening, lease administration, rent collection, tenant communication, maintenance coordination, property surveys and accounting.
The question isn’t simply:
“Can I manage it?”
It’s also:
“Do I want to?”
What If You Change Your Mind Later?
Keeping the home as a rental today doesn’t necessarily mean it must remain a rental forever.
Your plans may change.
The real estate market may change.
Your financial goals may change.
That’s one advantage of working with a company that understands both property management and residential sales.
At First Landing Realty, we’ve helped Hampton Roads property owners navigate both sides of that decision for more than 35 years.
Start With the Number You Don’t Know
Before deciding whether to become a landlord, there’s one piece of information you should have:
What could your house reasonably rent for in today’s market?
Once you know that, you can begin evaluating everything else.
Curious What Your Home Could Rent For?
Start with a complimentary rental analysis.
We’ll look at your property and the current rental market and give you information you can use to decide what makes sense for you.
No obligation to become a landlord.
No obligation to hire us.
Just a good place to start.
