There are many great Tampa area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call us at (813) 907-2555 for a FREE home buying or selling consultation to answer any of your real estate questions. What Factors Should I Consider Before Becoming a Landlord?We often are asked if it is wiser to sell a property or rent it out when the seller can't get the desired price for it. The answer depends on the numbers and your long term goals. Let's analyze your actual cash flow taking into account all of the following: Write down all your expenses. This includes your mortgage payment, principal interest, taxes, and insurance. If you have a homesteaded property, keep in mind your taxes go up once it becomes rental property. The homestead exemption will be lifted and the cap that limits annual increases will no longer be 3%.Next, you need to budget for monthly expenses such as homeowner's association dues, lawn mowing, lawn treatment, pool maintenance.You also need to budget for miscellaneous repairs. All homeowners are accustomed to these inevitable monthly repairs, such as for irrigation systems, A/C repairs, pool pumps, roof leaks, hot water heaters, appliance repairs. Make sure to budget for annual HVAC maintenance as well. If you either aren't comfortable being a landlord, have a hectic work or travel schedule, or live a long distance away and are unable care for the property, you will need to budget for a property management company.Realistically, expect that your home may not have a tenant for at least 1 month of the year, so you'll want to plan on a 1 month vacancy factor.Fast forward one, two, and three years. What are the potential impending large expenses such as replacing A/C units, roof replacement, remarciting the pool, replacing a pool pump, or a major appliance? Losing a tenant and re-renting the property often calls for paint and/or carpet.Finally, keep in mind that the average cost to put a home back into selling condition after it has been tenant occupied ranges from $4,000 to $10,000. Will the future appreciation of the home be enough to offset all of these expenses? Call us to determine the market trends in your area. With these budgeting tips in mind, you should have a better idea of whether or not renting is the right decision. Even if your home is paid off, you'll want to analyze the opportunity cost of renting your property – are there other investment opportunities that may not involve the risks of being a landlord? That is a question you need to take seriously before going down the rental path. If you’d like some guidance coming up with the best plan for your personal situation, give us a call or send us an email and we can help you determine what works best for you, and we are happy to refer you to excellent rental agents if needed. Wondering what your home would sell for in today’s market? Send us an email at [email protected] or call us at 813-907-2555.
