Vacant Homes Book Preview

Another advantage is the increase in the value in your vacant home through appreciation and/or by having some renovations done for your tenants which could end up becoming an enhancing investment at ultimate time of sale. For example, finishing the basement and adding a kitchen and a bathroom will turn it into a basement apartment, and increase the home’s value for resale. By renting out your vacant home, you will avoid squatters, vandals, and thieves. For example, if you own a vacant home and you are rarely there, squatters and vandals are going to take notice.Therefore, it is best to rent it out even short-term, so there is someone living there if you are not planning on quickly selling it. You may get lucky and even have tenants, who can help with maintaining your property. This could be anything from lawn care to plumbing issues. A tenant could even become a future buyer for your property. One con to renting out is that you are the landlord with the obligations, responsibilities, and headaches of that role. Property management is a dynamic activity, meaning you do not simply rent out your home and await income and tax benefits. There is regular and emergency maintenance (e.g., lawn mowing and the hot water heater that bursts at 3 AM.) Bad tenants are a serious concern for owners renting houses. They cause damage to property, are late on rent payments, or don’t pay rent at all. This will cause additional expenses for repairs, perhaps involve legal fees for eviction proceeding, and may eliminate the benefits of renting out your property. Background checks and requiring references on potential tenants is advised. Another con if you are expecting to sell within a few months to a year or two is that having tenants in the home can make the home more difficult to sell. For example, say you have let your tenant know that you are planning to sell, and that they must relocate within two months’ time. If they do not have options, they may drag their feet and make it as difficult as possible for you to prepare the home to sell. Whereas, if your home were empty, you could easily clean up, and get the property ready for the potential buyers, without having to work around your tenant’s schedule.