For many - your home bought a few years ago can't be sold. And now, life has changed - many of you have to relocate or your situation has changed enough that it requires you not being able to live in your current home.
If you do not want to short sale or foreclose - the other option is becoming an accidental landlord - one who doesn't want to be a landlord - but because of circumstance - has to be.
Things to consider if you are in this situation:
If you live out of state, you should hire a property manager.
If you live in state, you could give it a try on your own. Keep in mind, it is not as simple as placing a for rent sign up and collecting rent. Know the Landlord Tenant Act inside and out, follow the fair housing rules/laws and know what is required of you and the home you are renting to keep yourself out of court.
More than likely, the rent market value will not cover your mortgage. Be prepared to come up with the extra money to pay the mortgage. It is better to have the home rented and receive some income, rather than it being vacant because you can't rent it for what you want or need.
Last, consider hiring a property manager! Even if you live nearby. I talk to landlords everyday who say, "I've had enough - I don't want to be a landlord and don't want to handle renters anymore." Don't spend a year or longer getting to this point - talk to someone before you make the decision to do it on your own.
It's not hard being a landlord. But it is time consuming, can be frustrating, and it can cost you money if you don't know what you are doing. Make sure to educate yourself and be prepared!
This blog is written with my opinions and my opinions are presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions. Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .