SHOULD I RENT MY HOME OR SELL MY HOME
You are thinking of going out of the area or overseas for some time. Your home is your castle. Should I sell my home, then buy another home when I return. On the order hand, should I rent my home to someone for the time I am away.
Doesn’t matter what the reason, this is always a hard decision.
What if i rent my home?
If you could be certain the tenants would look after the property as you have, pay their rent on time, and let you know immediately should any maintenance be needed, you would not be in this dilemma.
It’s not all sunshine and rainbows when renting your property out, yes you have the rental income but with that you also have costs. Such as property and tenant insurance.
But how do you find such a tenant. And by the way, relatives and friends are usually the worst for paying rent, taking the attitude its just Aunt May and she won’t mind.
Even giving it to a respected Property Management company won’t guarantee anything other than someone will be there to take the tenants to the Tenancy Tribunal for breaches of the tenancy Agreement.
Around 4 years ago, tenants rented my daughters property in Fielding. On taking back the property she discovered the tenants had cut down a 7yr old beautiful weeping cherry tree she had tended for years, causing much heartache.
Tenants may take advantage and take liberties unless it is made clear from the start which boundaries are not to be crossed.
Remember, though, you cannot go against the Residential Tenancy Act so don’t try to enforce something you can’t.
If you are far away during this time, it is impossible for you to do regular inspections so you just have to hope and pray the company you have left the property with does just that.
Selling my home with tenants or without?
Many times, owners have tenants in a house that they are now intending to sell.
Is it best to give the tenants notice or let home buyers walk into an empty home?
This, of course is a financial decision as well as a security one.
For those who can afford to get a home staging company the furnish the property they probably are not worried about needing rent every week. This is the ultimate position to be in.
But most of us have mortgages that need paying, and the idea is the rent will pay that.
What if your tenants don’t want your home to sell?
A problem though can arise with tenants who are hoping the house does not sell, and put blocks on potential buyers by firstly being difficult for getting access, and not bothering to tidy up the property so it can be seen in a good light.
In winter, they will complain about the condensation on the windowsills, the mould in the bathroom citing damp as the reason, and generally making the buyer think twice.
So if you still think renting is a good idea give yourself time to find a great tenant, because they are around. Advertise the listing on one of many sites available and don’t try until you have had time to meet all the applicants personally. Get the phone number of their previous landlord and talk to them. When they apply get their name and address and drive past, and if you are brave enough knock on the door of their present property telling them you have come to talk about their application. You will get a feeling of who you feel could be good.
At this point passing on the details of your short list to a Property Management company, they will do a credit check to ensure the applicants are financially responsible.
If you don’t have the time go straight to a property manager, they will advertise, screen protential tenants and do all the background checks. Usually they will show you their short list and who you think would be suitable for your propety.
So the choice is yours sell or rent.
Part 2 will be soon on the question of ‘Should I sell’.
All our NZ sellers should contact Topnotch Agents NZ Ltd who, with their free service will not only identify the very best agent our sellers can use but will reward them with a Cash gift when the property sells.
Call us on 0800 355 655