What if you can’t sell your Atlanta home? Should you rent it out?

By
Real Estate Agent with Tim Francis Realty LLC

What if you can’t sell your Atlanta home?  Should you rent it out?

 

Garden Hills Neighborhood Rental Home - Picture by & offered for lease by Michelle Francis Buckhead RealtorWe live in challenging times where selling a home is not a given.  While Tim Francis Realty is starting to see dramatic decreases in inventory in our Buckhead & Sandy Springs market, the selling price points are still decreasing as well.  Tim Francis Realty expects that continued lower inventories will increase in sales price in the near future, but what to do if you need to move NOW?

 

What if you are taking a job out of state or internationally?  What if your family size has changed and you are bursting at the seems?  What if you are in a good financial position to buy a new home regardless of selling your current home?  A good option MIGHT be renting (or leasing) out your existing home. 

 

Let’s consider that the current leasing market in Buckhead and Sandy Springs is HOT.  Inventory is low and prices are strong and rising.  Demand is high.  More folks than ever before in Tim Francis Realty’s 10 years of handling executive rental homes are looking to lease EVEN if they can afford to buy.  It’s a choice thing; they just don’t want to buy right now.  Combine this with a strong ex-pat (or ex-patriot – folks in Atlanta on international assignment group) market and we expect this to continue.


Buckhead Rental Home - Picture by & Leased by Michelle Francis Buckhead RealtorSo, could renting (or leasing) out your Buckhead executive home be a good option for you?  Maybe, maybe not.   Some of this is completely dependent on how it works for you.  From a financial perspective it works for most folks.  (Obviously, if you are in huge financial distress, this is not a good option.)  However, from an emotional point of view, it’s not for everyone.  Understanding where you fit in this is critical. 

 

The pro’s are:

  1. Top quality renters are out there who have excellent credit (Tim Francis Realty average credit score is 783 – outstanding – as banks think 720 is excellent.)
  2. Excellent credit candidates take good care of homes
  3. As an owner you become an investor, having a tenant pay most if not all your mortgage payment for you.
  4. As an investor when you sell your home at a loss it can be a write-off, which isn’t true for a loss on your personal residence. 
  5. As an investor you can depreciate the asset (home, not land) over 27.5 years reducing your personal taxes on an annual basis – but paid back when you sell. 

 

(Of course, please see an accountant to verify your specifics.) 

 

 The con’s are:

  1. You have an asset that you are still responsible for
  2. It can be emotionally draining – for some it’s much more than others – understanding your personality is key here.
  3. If it’s vacant you are still responsible for mortgage and expenses.
  4. Tenants can damage your property (again, this goes back to a good lease, finding the right tenant in the first place and having a good security deposit, but folks worry about this.  With high credit scores, good tenant screening & a big security deposit, this has been a non-issue for Tim Francis Realty Property Management Group!)

 

Tim Francis Realty has been handling executive rental (also called lease) homes in Buckhead & Sandy Springs Atlanta, GA for the past 10 years.  Our luxury homes lease from $2,000 to $7,000 + a month.  We’ve never had to evict any tenant.  We’ve collected every dime of rent owed and we know the executive leasing market here in Buckhead and Sandy Springs inside and out.  Tenants regularly return homes to us in outstanding condition.  

 

Should you consider renting out your executive home in Buckhead & Sandy Springs?   Tim Francis Realty would be happy to meet and discuss this viable option with you.  Feel free to call or e-mail for a consultation today.    

Posted by

******************************************************************************************

Information and content on this blog is original to Michelle Francis  

Michelle Francis

Tim Francis Realty, Serving Buckhead, Atlanta & Sandy Springs GA

(404) 219-9760

Michelle@TimFrancisRealty.com

 

Want to know more about Residential Buying, Selling, Executive Home Leasing & Property Management in Buckhead, Brookhaven, Garden Hills and Sandy Springs, GA?

If so, you can find me here:

Buckhead, Atlanta, & Sandy Springs Real Estate on Linked-IN

 

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Show All Comments
Rainmaker
1,084,213
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

My AVAILABLE inventory is one-half of what it was this time last year......I'm beating the bushes for MORE properties...previewed 2 vacant properties today at the request of the sellers who have ALREADY MOVED!

Sep 28, 2011 07:57 PM #1
Rainmaker
409,895
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Wallace, 

As you are well aware, it sure beats a VACANT home for 6-12 months.  While folks might not prefer leasing over selling, they almost all prefer income verses expense during that time!

All the best, Michelle

Sep 28, 2011 08:47 PM #2
Rainer
204,518
Mark Delgado
houses for rent, Solano County & Glen Cove - Benicia, CA
Benicia and Vallejo, Property Management, rental h
I'm seeing many owners decide to rent. Our inventory is growing rapidly.
Sep 28, 2011 10:22 PM #3
Rainmaker
409,895
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Mark, 

True, we are seeing an expanding inventory in Atlanta too!

All the best, Michelle

Sep 29, 2011 04:30 PM #4
Rainmaker
1,241,294
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Michelle - I know a lot of homeowners have turned from sellers to landlords, which can be a very tough decision and future job.

Sep 29, 2011 08:16 PM #5
Ambassador
1,260,693
Debe Maxwell
www.AtHomesCharlotte.com | Savvy + Company Real Estate - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Hi Michelle!  We're seeing alot of this as well--our supply is actually falling and the rentals seem to be increasing!  I just had a discussion with an owner today--their rent fee will be far less than their mortgage.  I encouraged them to think about their carry costs and weigh the pros and cons.  Great minds today!!  I should forward them this post!

Sep 29, 2011 11:57 PM #6
Rainmaker
1,633,156
Dorie Dillard
Coldwell Banker United Realtors - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

Good morning Michelle,

It is a tough decision but I really like the way you have laid out the pros and cons if you can't sell your home should you rent! Our inventory of homes for sale are declining. There is an increased need for rentals due to the Central Texas fires and displaced families and the influx of families moving here but can't sell their home in another part of the country.

Sep 30, 2011 06:04 AM #7
Rainmaker
547,890
Betty & John Knowles
Coldwell Banker Vanguard - www.teamknowles.com - Springfield, MO
REALTORS® - Springfield MO Real Estate

Hi Michelle, renting can be a good option if you do your homework and screen the renters first. Otherwise it can be a disaster.

Sep 30, 2011 03:21 PM #8
Rainmaker
409,895
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Michelle, 

Depending on how it's handled it can be a huge blessing and income stream.  

Debe, 

Our demand for rentals dramatically outpaces supply and I expect this to continue.

Dorie, 

Yes, it's not a black and white answer, will work for some.

Betty & John, 

Getting a good tenant is the key.  No tenant is better than a bad tenant.

All the best, Michelle

Sep 30, 2011 04:24 PM #9
Rainmaker
296,982
Dan and Amy Schuman
Howard Hanna Real Estate Services - Solon, OH
Luxury Home Specialists

Renting vs. selling is a very tough choice for many folks, so it was nice that you put together the pros and cons. A very helpful post.

Oct 03, 2011 09:21 PM #10
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Rainmaker
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Michelle Francis

Realtor, Buckhead Atlanta Homes for Sale & Lease
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