I have had many conversations lately where people were asking me about whether they should sell their home or turn it into a rental. My advice might not be expected, since my job is to sell houses. I pretty much always tell people that owning rentals is a great way to financial independence. (Here is why I say that.) There are a few thoughts I would talk about before anyone goes down that path.
The first and most important is that you should get a property manager or property management company to take care of it for you. It is not an investment if it is your job. Depending on the tenant, it can be a full time job. Also, if anything goes awry and you do not follow the letter of the law, the tenant gets all of the power, since it it the home that they live in. Paying someone who knows exactly what to do in that situation is well worth it. (I am very happy to refer the one that I use if anyone wants a great referral.)
Second, you need to understand that this is someone’s home. Trying to squeeze every last dollar out of a property can make someone a terrible landlord. No one is looking for terrible landlords. Be prepared to put money into the investment when needed.
Third, hands off is the best approach in my mind. If you have a good property manager and you are fixing the things that a tenant wants you to fix, don’t micromanage. For some people that can be a very hard challenge, since it is THEIR property. Unless you are just adding on tons of value, let people live in their home.
If you can handle those three things, than I say turning your home into a rental property is a great thing to do for all the reasons that I wrote about previously. If you think any of the three above things disqualifies you, and you know that selling is the way to go, then I am the realtor for you. You can reach me anytime at 515-639-0047 or RyanLynch@KW.com.