When moving to a new location, people always wonder what it will be like to rent their current home out and move. If you’re moving with your family, then the decision is probably a little more difficult. But if you’re going alone or just visiting for a short period, renting out your current home can be a lucrative option that won’t break the bank compared to buying another house.
Most people know that the benefits are money, but there are also times when renting out your current home may not seem wise with some potential drawbacks thrown into the mix.
Benefits of Renting Your Home
The financial aspect is some of the more obvious benefits of renting your current home during a move. If you rent your home to family or friends, you may get some side income from them. Also, suppose you rent your home out to someone or have a renter lease with them. In that case, they will be responsible for paying utilities and yard work and any other expenses such as repairs and general maintenance.
The rental income will pay for all expenses without deducting from your bank account. The design of your home matters when renting out. The number of bedrooms and kitchen appliances you have may affect what kind of renters can rent your home. If your home has an interior barn door and other trending features, it will attract more renters.
Another benefit of renting your home is to get an idea of what your next home will be like. If the home is left unoccupied for long periods, it will be damaged, particularly in a power surge or storm. If you live in an area with lots of people and safety, then renting out your home may be a good idea.
The Drawbacks of Renting Your Home
Although renting out your current home may sound like the perfect option, some drawbacks may affect your decision. Some people may not maintain your property as you would like and the home may become a victim of vandalism.
Also, if you rent out your home to people who do not have a very good credit history, you may run the risk of them not paying rent or other expenses associated with your home.
The location of your home is also important. If you live in an area where there is a high amount of crime or theft, it may be best to stay in your current home until you move rather than renting it out and letting potential criminals into your private space.
Also, another challenge of renting out your home is finding reliable renters. You may think that people you already know or trust are good renters, but they may also be unreliable and not pay rent on time or have other issues arise.
Another thing to consider is that some cities may have ordinances stating that you must maintain a certain amount of time in your home.
Also Read: Top 9 Best Areas to Rent Townhouses in Dubai
So Is It Worth Renting Out Your Home?
If you’re moving to another area and renting out your current house, it can be a good idea if the right conditions are in place. But if the conditions aren’t right, it may not be worth renting out your home.
Of course, the location of your home will have a lot to do with whether or not it’s worth renting out. If you live in a secluded area with good security and few break-ins, then renting out your home may be no problem. Also, you should make sure that whoever is living in your house is reliable and has good credit. You can also add a clause to your rental agreement that states that tenants will be charged if they damage the home.
Another thing to consider is insurance. Although it is possible to purchase temporary or hole-in-the-wall insurance, this type of insurance usually has low coverage limits, thus endangering your personal property if something like a storm occurs while you aren’t there. If you don’t want to take this chance and risk someone stealing your personal belongings, then it’s probably best not to rent out your home while you move.
Also Checkout: 7 Things to Know Before Getting a Rented Room
If you think that renting out your home is the best option for you, make sure you know the benefits and drawbacks. The pros should outweigh the cons, and your home will be in good hands while you move.