Today’s topic is about renting out your home—specifically, if your house didn’t sell the first time, why I would caution you against renting it out.
If you already own multiple houses or your desire is to have long-term hold assets, then this conversation is not for you. If you already have experience in property management and have one or two investment homes and you’re wanting to acquire more, that’s excellent, and you don’t need today’s message.
This discussion is for sellers out there who listed with an agent hoping to sell their property, but it didn’t sell. When these sellers speak to us, they’re usually very discouraged. They sometimes say they aren’t sure they want to re-list and may try renting out their home and waiting a year or two before trying to list again and hopefully get more money. I will tell you now, I have never seen that happen. In fact, the opposite has happened.
We have had clients come to us with regrets about renting out the house because renters may have kids and pets and won’t have the same respect for that property as you, the owner. It was your home, but it isn’t their home; it’s a temporary living arrangement for them. This commonly leads to you needing to repaint, steam the carpets (maybe even replacing them), and something’s going to give out, like the A/C.
By the end of that first year of having tenants, if you’re in San Antonio, there’s only an average appreciation rate of 3% to 4%. I can assure you, the money you would have made is completely gone either from vacancy when there are no tenants or from needing to make improvements to list it again.
If you find yourself in this situation, reach out by phone or email. Let us walk you through your options. Please pause and speak to an agent before jumping into renting out your home. It will likely just cost you time, irritation, and money.