A common response after talking with a potential new client - dicussing the property and possible rent amount, “What do you mean that’s all I can get for rent – I need at least $500 more a month than that – why can’t you do it?”
Because I am not a magician?! No – I didn’t say that – but it did cross my mind! I believe in getting the highest rent possible for a home, but there is a point where the only way you can get an unrealistic rent price is if you could magically make it happen!
The toughest part about renting your home isn’t renting it – it is being able to “afford to rent it”. Often, the mortgage payment, HOA, property manager fees, repairs, etc., cuts into the bottom line so much so that it becomes unaffordable for some owners. And more often than not, these same owners aren’t able to sell similar reasons - not being able sell for what they owe.
So what can someone in this situation do? It strictly depends on your situation – but options include:
- Renting the home for what you can – since a little income to offset the mortgage is better than none.
- Consider selling your home with a lease option to purchase or owner carryback.
- If you are moving because of a job, ask your employer if a relocation program is available to help.
What should you NOT do? Try and rent the home for more than what rental market supports. It doesn’t matter how much you try, how much you market it, just like you cannot sell an overpriced home – you cannot rent one either.
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 .