There has been a lot written about how buying a home is less expensive than renting one in many parts of the country. Rents are skyrocketing and homes are at bargain prices. These two situations are also causing some sellers to consider renting their home instead of selling it.
After all, they can get great rental income now and perhaps wait until house values increase in the future before selling. This logic makes sense in some cases. I believe strongly that residential real estate is a great investment right now.
However, there is a huge difference between deciding you want to become an investor (and landlord) and deciding that renting your primary residence might be ‘easier’ than trying to sell it. As a real estate professional, it is my job to educate the homeowner to the possible challenges that might arise if they rent their home. Here are some questions every potential landlord should consider:10 Questions to Ask BEFORE Renting Your Home
1.) How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).
3.) Have you interviewed a few experienced eviction attorneys in case a challenge does arise?
4.) Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
5.) Will you allow pets? Cats? Dogs? How big a dog?
6.) How will you actually collect the rent? By mail? In person?
7.) Repairs are part of being a landlord. Who will take tenant calls when necessary repairs arise?
8.) Do you have a list of craftspeople readily available to handle these repairs?
9.) How often will you do a physical inspection of the property?
10.) Will you alert your current neighbors that you are renting the house?
This Article was Provided by the Keeping Current Matters Crew and Neal Paskvan
“Neal Paskvan is a Real Estate Agent in Downers Grove with Baird and Warner”
Neal also writes on his own blog about every thing Real Estate
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nterest from both sides to do this collaboratively — dare I use the word — versus ending up with a ballot measure,” Murray said. Although he did not offer a precise timeline, Murray said he would work on the issue “early” in his administration and hoped to have a $15 minimum wage by the end of his first term, with protections for small businesses and others. Maud Daudon, president and CEO of Seattle Metropolitan Chamber of Commerce, said she’s encouraged that Murray wants a “robust discussion.” The chamber opposed SeaTac Proposition 1, but has not yet declared its position on a $15 minimum wage in Seattle, Daudon said. “Our fervent hope is that we can bring the problem-solving, solutions-based approach of business to this issue,” she said. Supporters of a minimum-wage increase say it would lift low-wage workers out of poverty and strengthen the economy. Opponents say it would force businesses to cut staff and raise prices. The idea of giving low-wage workers a pay raise is gaining momentum. Also Tuesday, voters in New Jersey overwhelmingly approved a measure to raise the state’s minimum wage by a dollar to $8.25 an hour and to peg it to inflation. That makes New Jersey the 11th state, including Washington, to require annual inflation adjustments. Nationally, the federal minimum wage has been at $7.25 an hour since 2009. On Jan. 1, Washington’s minimum wage will increase by 13 cents to $9.32, the highest of any state. Congressional Democrats are calling for a hike in the federal minimum wage to $10.10. But with Congress in gridlock, local policymakers are taking matters into their own hands, said Paul Sonn, of the National Employment Law Project. “We’re going to see more cities call for higher minimum wages,” Sonn said. “More and more college graduates are working in jobs like retail or restaurants. These jobs are becoming a bigger part of our economy, and cities and states are struggling with that.” Four major California airports already require their tenants to pay minimum wages well above the statewide standard. At Los Angeles International Airport, workers are guaranteed an hourly minimum of $10.91, or $15.67 without health benefits. California lawmakers in September committed to boost the state’s hourly minimum standard from $8 to $10 by 2016. In Albuquerque, N.M., and San Jose, Calif., voters last November raised local wage floors. And in New York City, Mayor-elect Bill de Blasio, who tapped voter frustration with rising income inequality, supports a separate minimum wage above the statewide rate. “If you pay workers a living wage, that’s good for everybody,” said Seattle venture capitalist Nick Hanauer, who along with his wife, Leslie, gave $25,000 to support Proposition 1. “It’s good for businesses. It’s good for the workers. And it’s good for taxpayers because now they don’t have to pick up the tab for government-funded poverty programs.” Hanauer said the SeaTac measure will have ramifications nationwide. “President Obama, in his State of the Union speech, called for a $9-an-hour minimum wage,” Hanauer said. “We saw his 9 and raised him 6.” Seattle Times staff reporter Jim Brunner contributed to this report. Amy Martinez: 206-464-2923 or amartinez@seattletimes.com. On Twitter: @amyemartinez
