What if you can’t sell your Atlanta home? Should you rent it out?
We 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.
So, 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:
- 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.)
- Excellent credit candidates take good care of homes
- As an owner you become an investor, having a tenant pay most if not all your mortgage payment for you.
- 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.
- 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:
- You have an asset that you are still responsible for
- It can be emotionally draining – for some it’s much more than others – understanding your personality is key here.
- If it’s vacant you are still responsible for mortgage and expenses.
- 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.