Should I Rent My House or Sell It?

Interest rates are historically low, hence many homeowners are able to refinance and obtain a low mortgage interest rate.  Combined with a strong rental market, they may then decide to rent their San Diego house instead of selling in the current marketplace.

San Diego real estate is a great investment and choosing to rent in hopes of a higher price in the future is not a terrible idea...in some cases. The question is: Are you ready to be a landlord? Here are some things to consider before making this important decision.

1. What documents will you need to rent the property? Important paperwork includes disclosures that protect you and the tenant, as well as a complete rental agreement.
2. How will you collect the rent? In person? By mail? Or direct deposit?
3. Because there are tenants who at times cannot afford to pay their rent, are you able to make the mortgage payment without receiving the rent?
4. Do you know an experienced eviction attorney in case you need one?
5. Would you consider allowing pets? If yes, what type and size will you allow? And will you charge an extra pet deposit?
6. Of course there are going to be repairs. Who will take the calls from tenants and who do you know that can handle these repairs?
7. How often do you plan on completing a physical inspection of your property?

I'm sure as you're reading these questions, you're reconsidering. Although renting residential real estate is historically a great investment, as you can see, it is not without its challenges.