There are some homeowners who understand there is value in holding on to a single family home and renting it out. During my career I have met a few people who tell me, “Alan, I rarely sell a home once I own it. I just pay the mortgage, I rent the house out, and I move on to my next home.”
Owning Rental Homes Is a Business
People who own a home they are planning on renting out would be wise to treat that home as a business. They need to run credit checks on applicants, verify employment and check the assets of their applicants. They need a very clear lease agreement with everyone’s signatures.
Take Care of Your Investment
Property owners should put aside money each month for repairs and maintenance of their investment. It astounds me how many property owners say, oh, it’s just a rental. If that is their attitude, then that is the type of tenant they will attract. The nicer the property shows, the better the landscaping, the more updated the kitchens and baths are, the more rent you can command.
Not Everyone Is Cut Out For Managing Properties
If you are softhearted and reluctant to hire a property manager to oversee the rental property, then you probably shouldn’t consider managing a rental. Abbe and I are experienced in Property Management. We can help get the property rented out for you should you decide to purchase an investment home.
Still not certain that owning a single family home as a rental is a good idea? Well, the big boys are doing it, so I am thinking you might want to reconsider.
From CNBC”S Diana Olick
- Taylor Morrison just announced a partnership with Christopher Todd Communities to build single-family, rent-only communities.
- It’s part of a trend of builders stepping into the single-family rental space, either on their own or partnering with established rental companies.
- Both Lennar and Toll Brothers have recently started building homes for rent. Lennar sells its properties to investors, while Toll plans to hold the properties in partnerships.”
Abbe and I would be pleased to sit down and run some numbers for you should you be considering purchasing a home as an investment. Rental prices are holding strong and rental are in demand.
Give us a call at Chane Sells, and be sure to check out Abbe’s YouTube Channel, Abbe Talks, or check out Chane Sells Facebook Page, or find Abbe on Instagram.
SPECIAL ANNOUNCEMENT FOR COMMERCIAL INVESTORS: The Chane Sells team currently has listed a choice piece of property that is situated within the Florida Qualified Opportunity Zone. To learn more about the potential tax advantages available with this exciting property, click here.