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3 Reasons To Become A New Landlord

By Elizabeth R. Elstien

You may never have thought about becoming a landlord. Nowadays homeowners may need to become landlords out of necessity rather than choice. Here are three good reasons to become a new landlord and protect your investment.

  1. Avoid Foreclosure. Perhaps you are worried about becoming behind in the mortgage payments on your home due to recent job loss or sickness. Rather than lose your investment, look at renting your home. You'll have to move out and rent another home that is more affordable with your current budget. Try to pay a monthly rental price that is less than you can afford to give you some extra money to put into the home you own to cover the difference on the mortgage payment if you can't get the rent you need to cover the full mortgage. Once your finances are better, you can choose to move back into your home or, as the market is picking up again, sell it.
  2. Home Inherited. Maybe you just inherited a property, but you don't live in that area and don't plan to move or you already have a home you love. Renting the inherited property will let you retain it and minimize the costs to you. If it's a home owned free-and-clear, the rental payments will be extra income each month minus any maintenance or other homeownership expenses.
  3. Moving Away. Planning to move for work, military service or other reasons? If you would lose money on the home if you sold it now, consider renting it out. Remember that it's not just the mortgage balance you have to cover if you sell, but Realtor commission and closing costs. Factor in any new mortgage payment and fees and determine if you can afford to rent the property.

Considering renting a home to protect the investment and be able to hold on it? Factor in all expenses and research how to become a landlord to do it right.

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