My mom passed away this year and left me her house, but I’m not sure if I really need that much space. I’m considering renting it out and finding a smaller place to live. Do you think renting is a good idea? What aspects should I keep in mind when it comes to renting out property? Thanks for any advice in advance.
It really depends on a few things—how much you could rent it out for, how much you’d spend on a smaller place, and whether the house needs any big renovations. You should also consider what you could get if you sold it instead.
@Ren
Other houses in the area are renting for around $1200 to $1375. I could rent a smaller place for about $1000. Selling makes sense too, but would now be the best time or should I wait and see if interest rates drop?
@Ren
On the surface, renting could make sense, especially if you don’t need a bigger space. But there are hidden costs like maintenance, vacancies, and maybe even property management fees. The financial difference may not be huge. You could also rent out a room to someone, which might be easier to manage.
It’s hard to say without more info. How big is the house? How much would you be paying to rent elsewhere? You could rent out a room, or the whole place if you really don’t need the space, but keep in mind repair costs and the hassle of managing tenants.
@Dara
The house is 1500 sq ft. Rent comps are about $1250 to $1375, and I could find something smaller for $1k. I hadn’t even thought about repair costs or damage—good point!
Why not just sell the house? It could save you the hassle of managing a rental.
Is the area mostly rentals or homeowners? That could impact how easy it is to rent out. Also, is the house in town or in a more rural area?