In today’s housing market, homes are not selling as fast. Depending on your market area it is very likely that you home can sit for a couple months…..a year? It can happen. It has had happened from what I have seen. Frustrated homeowners get fed up with the long wait, especially if that move is necessary to continue on to life’s next step, such as, a job relocation, moving closer to family, retirement, etc.; Homeowners get so fed up with being “stuck” that they are looking for other ways to unburden themselves with their current home’s “for sale” status. The leasing of residential homes is becoming more and more common, although there are some lingering doubts that keep some homeowners from leasing their homes.
1. What does the process of leasing your home involve?
Well, that can depend on your needs. If you just want to do it all yourself, you can! You go get a “for lease” sign, you market your home in the newspaper, online ads, etc; screen your own possible tenants, write up your own standard lease, that you can probably download from a reputable site and if you’re a handy person you can be in charge of repairs (depending on the terms of your lease agreement). For some homeowners, however, there just isn’t enough time in the day. The ability to utilize the knowledge of a realtor is much more desirable. A realtor can do all of the above for you, minus the repairs unless their brokerage has a separate property management division, which would entail a different agreement between the homeowner and property management co.
2. How can I ensure quality tenants will lease my home?
You can’t, life happens, people that would otherwise be extremely responsible, sometimes are forced to do what is economically best for their own families. However, you can increase the probability that you will lease to a quality tenant by performing proper screening, consisting of: employment length; income and rental verification, as well as a credit report. A home is a very personal investment and it is very important that when you are leasing your own home that you or your realtor utilizes an efficient screening method.
3. How much will leasing my home cost me?
Again, that depends, if you decide to do this all yourself or utilize the services of a Realtor. If you handle everything on your own, you’ll be saving the payment to a realtor, which typically can consist of first month’s rent, or percentage of total monthly rent to be received, however; this will all depend on your home’s price, location, agreement between you and the realtor etc. You also have the property management fee, if you decide to go that route. However, there is always the risk that if you don’t follow the right procedures; lease agreement, proper screening, leasing your home could cost you much more.