There are many factors to consider when you are thinking about whether you should rent out your Provo home; factors such as your willingness to be a landlord, potential profit, and possible expenses.
My name is Chris Johnson, real estate agent with Real Estate Marketing Agency in Anytown and today I would like to help you weigh some of the pros and cons of renting out your Provo area home or investment property.
Profit – You will receive income for every month there is a tenant. This can be used to help fund a mortgage for a new home or to simply provide another source of income.
Tax Advantages – Renting out your Provo home has many favorable tax implications including non-taxed equity and deferred capital gains under some circumstances.
Renters Have Lower Standards – Generally, renters have to tolerate outdated items in the home – especially if the rent is reasonable. In contrast, if you wanted to sell the home, you would probably need to pay big bucks for a remodel or appliance replacement to compete with similarly-priced homes in the area.
Bad Tenants – You may have to deal with people that don’t pay rent on time, damage the property, or are just plain rude.
Expenses – You will be responsible for fixing any issues on the property and keeping it up to code. This costs you both time and money. (For practical purposes, aren’t they the same thing?)
You May Have to Evict Tenants – When a renter doesn’t pay rent you’ve got a complicated trouble. Evicting tenants is not straightforward and immediate. You must follow state and local regulations or risk a hefty fine. Thus, carefully choosing tenants and creating a contract that protects you is extremely important. Take your time verifying references, talking to prior landlords, and reviewing credit reports. Bad renters can quickly turn a good investment bad.
If you are looking for investment properties in the Salt Lake City area, call me at 801.938.3466 or visit http://myrealestateagentblog.com/about/. I am a professional Utah real estate agent and I would love to talk to you about your real estate goals and needs. I can give you comprehensive specifics about local trends in the investment property market. Thanks for visiting my Salt Lake City real estate blog.