Sometimes, unexpected opportunities arise, such as a temporary work relocation. Or perhaps you’d like to take advantage of a strong buyer’s market but don’t wish to sell your current home at a loss.

Renting out your home may be an option, but there are certain factors you’ll want to consider. Here are a few things to keep in mind if you’re thinking about renting out your home:

Rent Reserve

Set aside some extra money in case the rental income doesn’t completely cover your mortgage payments, property taxes and home insurance.

Taxing Situation

There may be tax implications to consider, so reach out to an accountant or financial advisor as rules can vary depending on your situation.

Expect the Unexpected

It’s important to be prepared for unforeseen circumstances such as unexpected repairs or if your tenant suddenly falls behind on their rent.

Love It or Lease It

Being a landlord isn’t always easy. To avoid any potential conflicts, it’s best to try and emotionally detach yourself from your former home.

Prepare to Repair

Tenants may not treat your home with the same level of care that you once did, so when it comes time to sell, your home may need some work.

Market Matters

If the market gains strength, you may be able to increase your equity. However, if the market drops, you could face a potential loss.

If done right, renting out your home can be a great decision that pays off! You’ll need to treat it like a business though, so evaluate the demand for rentals in your area and look into landlord/tenant laws before moving forward.