There could be a number of reasons why you’re considering selling your home. You might be looking for somewhere smaller because your kids have flown the nest. It might be that your family is getting bigger and more living space is needed. People sell up because they’ve got a new job out of state or they’re retired and want to move somewhere warmer. Whatever the reason, before you put your property on the market, it’s worthwhile exploring another option. Owning and renting out your property is becoming a popular choice for millions of Americans. The housing market is still perceived as being very risky. However, the outlook is favorable if you’re considering becoming a landlord or putting your home up as a vacation rental. Here are some reasons why you might decide not to sell.
1. It’s a Good Investment
If you’ve always fancied your chances at being a property investor, now is a good time to try it. You’re in an advantageous position because you’ve got a more competitive loan that required a lower down payment. Investor loans often have higher interest rates and require a much bigger down payment. There will also be certain clauses and restrictions. You already own your home, so why not try renting it out for a couple of years? You can always sell in the future if it doesn’t work out. It might inspire you to invest in more property, in which case make sure you calculate roi on rental property guide.
2. Long-Term Equity and Profit
Trends are showing that the housing market is growing and the average price of many types of property is increasing. If you decide to rent out your property for the time being, you’ll be able to take advantage of rising prices when you do decide to sell. Rental prices are also increasing, so you’re in a win-win situation. If you’re still paying a mortgage but can rent it out at a higher price, then you’re going to make a profit.
There are many tax benefits to owning a rental property. All your expenses can be written off, such as utilities, mortgage interest, property taxes, and Renters Warehouse fees. Any cash-flow will also be tax-free, especially if you leverage your capital. It’s definitely a big help for any people who want to get some extra money easily. So if you can afford to keep your property and rent it out then you need to do it. Just make sure that you are aware of how much you should actually be renting it out for. You need to make sure that you do proper research into how much your property is worth. This amount can vary on its size, the location, even something like having a cell tower on it can make the price vary. If you would like more information on this, then you can click here for cell tower buyout information.
3. It Acts as a Security Blanket
If you’re moving because you’ve got a new job, or have just started a new relationship, keeping your home as a rental property rather than selling it means you’ve got something to fall back on. Rather than plowing everything into your new venture, you’ll be able to come back to your home if you need to in the future.
If you have a large home to rent out, you could also consider becoming an HMO landlord, meaning that you’re renting your property out to 3 or more people who aren’t from one household but they all share amenities like the kitchen and bathroom. This could give you a bigger income to fall back on if needed. You would need an HMO Mortgage Broker rather than an ordinary mortgage broker but there’s not much difference in the duties of a landlord. It’s something to consider if you are planning a career change or a big life change.
4. It’s a Good Experience
Learning how to manage a property investment is a good experience. There are many things you get to learn along the way. You’ll have to work with a property or rental company, an accountant, insurance company and many other parties who will understand and be able to help you. You might like the experience so much that you decide to buy more properties or open a business of some kind. It might just mean you learn to look after your home better. On the other hand, you might realize that being a landlord or vacation rental owner is not for you.
5. How to Turn Your Home into a Vacation Rental
Whether you want to rent your home a few weeks of the year or all year long, you need to make sure you attract the right guests and get the right amount of rental to make it worthwhile. If you don’t want to rent the whole of your house, you can still generate some extra income if you’ve got a spare room or a suite. You don’t need a luxury home because many people are looking for reasonably priced rentals.
If you want to attract guests, you need to advertise your home where people are looking to rent vacation rentals. One example is Fun Cabin Rentals. Learn more about them here. Your listing will have to include some awesome photos of your home, and lots of them. Images are far more powerful than words, so they are an important selling mechanism.
Include some captivating property descriptions that will appeal to your preferred type of guest. You’re going to need to write some good sales copy. Think about the audience you’re targeting. For example, if you want to attract couples looking for a romantic getaway promote the views, private balcony, soaking tub, hot tub, local gourmet restaurants and anything else you think they’ll enjoy for a romantic getaway.
How much you’re going to charge can be a difficult one to answer. A good strategy to adopt is to start lower than any others like yours in the area. This means your property will be snapped up quickly. When you’ve got some good reviews increase the price a little. You may also want to look into getting home insurance to ensure that your home is covered for guests who stay in your house while on vacation. Having home insurance assures that you are protected should anything go wrong, while they are staying there. Finding the right policy to cover your property could be as easy as looking through sites like homeownersinsurancecover.net.
6. The Importance of Reviews and How to Get Them
Reviews are going to help you rent out your property. Prospective guests are going to be reading them very carefully. Properties with lots of positive reviews are going to experience high demand. Reviews are also a great way of getting more exposure on vacation rental websites.
Getting the reviews is simple. All you have to do is ask. When your guests leave, contact them by email to say thanks and ask them to leave a review. Little touches such as a fruit basket available for free when they arrive will make a big impression. It’s also important that you’re polite and professional throughout the process. Manners cost nothing and you’ll be rewarded with positive reviews and more guests.
When prospective guests get in touch respond to their inquiries quickly, with a personal touch. Customize and personalize all your responses rather than relying on canned ones. Review the profiles of those making the enquiries and mention things you know they’ll be interested in.
There are many opportunities for anyone who wants to rent their home. If you think you’d like to take advantage of them, then give it a whirl. At the very least, you’ll be giving yourself some time for the price of houses to go up before you eventually sell.