Tuesday, October 27, 2009

When You Can't Sell Your Home

If you’re unable to unload your home at a fair price, renting it out may be a wise option. This way you will have help paying the monthly mortgage while waiting for the value of your home to increase, according to AARP.

Owner-turned-landlord, you are warned to:

Check comparable rentals in the area and price it right.

Screen your tenants carefully and check out their ability to handle the monthly rental payment.

Keep good records and consult your accountant about tax consequences.

Make sure you follow landlord tenant law.

Make certain that all parties are properly insured.

Use a handyman (or do it yourself) when repairs are imminent.

Factor in provision for lease/option to buy.

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