June 1st, 2011 1:17 PM by Eileen Denhard
by Bob Kelly, Guest Writer
There are times when talking to potential sellers a discussion arises about selling now vs. renting until the market recovers. Sellers today who are suffering from sticker shock about what comparable homes are selling for in their neighborhoods start to sing the well known song, “If I can’t get my price, I’ll rent it.” When that refrain surfaces I launch into my chorus of “Make sure you know what you are getting into.” All joking aside renting your property vs. selling it brings up issues that may not have been considered and should definitely be verified before making such a decision. The rules regarding tenant rights are different in every state and should be investigated with a real estate attorney before entering into any such agreement.
Here are some pitfalls to think about:
We all like to think on the bright side and rarely want to look at what could possibly go wrong. This is one of those cases where before making any kind of decision you need to consult with the experts in your state—a real estate attorney, your insurance company, and a realtor or management company. Also do the “what if” scenario on paper and determine how long you can absorb the extra costs should something go not quite as planned. You may find that the potential for loss far outweighs what you would be losing if you decide to sell at the current market value.
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