SHOULD I SELL OR RENT MY HOUSE?

BY: PAUL CROWDER

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Maybe you're a homeowner whose moving to another home or maybe you inherited property and contemplating what to do with it. For whatever your reasons are, you may be asking yourself, "Should I Sell Or Rent My House?". Having been real estate professionals for several years, we frequently work with individuals who are trying to figure out the best solution for their situation. Here are four essential points that you will need to consider to help you decide. 

Do you need funds from the sale of your current home? If you need all the equity from the sell of your home for the down payment on a new one, you might want to sell your home. If you don't need all the equity for a down payment, you might be able to take out a home equity loan or refinance into an investor loan and use the proceeds for your down payment and still make your home a rental.

What are your future plans? If you are being transferred or moving to a different city and are likely to return, it may be cheaper to rent your home and move back in when you get back. If you think home prices in the area where your house is located are going to rise and your plan is to sell it within five years, you can still rent it out for up to three years without losing your opportunity to sell it with likely no capital gains tax providing you owned and lived in the house for two of the past five years prior to the sale.

Can you rent home to cover mortgage payment and expenses? If you can, keeping your house can be a smart way to help fund your retirement or help pay for college tuition. Taxes you pay on rental income can be significantly reduced by taking deductions for your expenses on the property. When you finish paying off the mortgage or when you retire, you can sell your house and convert your equity into a lump sum payment, or continue renting it and collecting income during your retirement. Over time, having tenants paying monthly rent can pay down your loan and build up equity in the property.

Do you want to be a landlord? Owning rental property can be a great investment providing your able to handle task of maintaining the property and dealing with tenants on an ongoing basis. Hiring an experienced property manager to assist you can be a great decision. A quality property manager can handle all the work for you and help maximize your investment in your house.

I enjoy sharing helpful information and welcome your questions and comments.You can send me an email at paul@crowderrentalhomes.com or call  us at 704-909-0400. You can visit our website for more information by clicking here: CROWDER PROPERTIES 







Paul Crowder has more than 16 years experience and is Owner and Manager of Crowder Properties. He has a strong passion for all things real estate with a proven track record of success as a Real Estate Investor, Property Manager and Realtor.

DO I NEED A PROPERTY MANAGER FOR MY RENTAL HOME?

BY PAUL CROWDER

If you own rental property or are considering purchasing one or more investment homes, you may be asking yourself this question, "Do I need a property manager for my rental home?". April and I purchased our first rental in 1999 and made the decision to manage it ourselves. We soon came to the realization that this was no simple task. Here are three essential points that you will want to consider to help you decide.

RENOVATIONS? 

Your property will likely need some renovations and updating. You're going to have to get bids from contractors, shop for materials, and make decisions while considering cost verses value-added.  For a property investor who is just starting out, making the wrong decisions can be costly.

Hiring a property manager who is both knowledgeable and experienced at making these decisions can be a real benefit that can save you a lot of time and money. The property manager you select should be able to advise you.on what and when work should be completed as well as tell you what work is unnecessary. It is important to make sure the property manager has a network of reliable, cost effective repairmen and service providers. 

TENANTS?

Once you get the property closer to rent-ready condition, you'll need to make decisions on marketing and finding new tenants. Renting the property when it's vacant is typically the most time consuming and toughest part. It is important that you make sure that you are in compliance with state and federal housing laws throughout the process.

 You'll need to place rental ads, respond to emails and phone calls as well as meet with prospects to show property.You will probably have a few no-shows and likely have to show it several times.  Then you must review applications, pull credit reports and complete criminal background checks.You will then need to call employment,past landlord and personal references, 

Once applicants are selected to be your new tenants, you'll need to prepare a lease, meet with applicants to review the lease and collect deposits.You will then need to meet with the new tenants at the property on move-in day for a walk-through, collection of initial rent payment and to give them keys to their new home. Finally, you'll have to finalize your lease with the previous tenants and resolve the security deposit.

Good property managers are skilled at finding and screening tenants quickly and can handle the process for you. Professional property managers will also have a good understanding of applicable state and federal housing laws. 

DAY-TO-DAY MANAGEMENT?

First and foremost, It is important to always treat your tenants with respect, be attentive to their needs and work to resolve issues fairly with them.  If you follow this advice, it should lower the hassle of owning rental properties.

Once tenants have moved in, the day-to-day management begins. Besides collecting rent payments, you'll have to deal with about three to five minor issues per year (like the neighbor's loud music or barking dog). Figure on one or more issues requiring a plumber, electrician or other contractor. You should also be prepared to handle majors issues such as a flood, fire or non-payment of rent by your  tenants. Routine maintenance and inspections can often help prevent other more costly issues from occurring.

Hiring an experienced property manager can be the right choice for you if you're super busy with your personal life or if you are not interested in handling the day-to-day management responsibilities. A quality property manager can do a great job for you and help maximize your real estate investments..

I enjoy sharing helpful information and look forward to receiving your comments and questions. You can send me an email at: paul@crowderrentalhomes.com 

You can visit our website for more information by clicking here  www.crowderrentalhomes.com 

Paul Crowder has more than 15 years experience and is Owner / Manager of Crowder Properties. He has a strong passion for all things real estate with a proven track record of success as a Real Estate Investor, Property Manager and Realtor. 

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