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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Topic:
Real Estate General Information
Location:
Georgia Fulton County Atlanta Buckhead
Groups:
30 Days In September 2011 Localism Posting Challenge
Atlanta Real Estate Q&A
BananaTude
Property Management
Tags:
buckhead luxury home rental
buckhead executive home leasing
atlanta luxury home property management

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Ambassador
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Debe Maxwell
Charlotte Homes for Sale - Charlotte Neighborhoods
www.AtHomesCharlotte.com | Savvy + Company Real Estate

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!

September 29, 2011 11:57 PM
Rainmaker
1,521,973
Dorie Dillard
Realtor-Canyon Creek- NW, Austin TX Homes For Sale
Coldwell Banker United Realtors

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.

September 30, 2011 06:04 AM
Rainmaker
534,963
Betty & John Knowles
REALTORS® - Springfield MO Real Estate
Coldwell Banker Vanguard - www.teamknowles.com

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

September 30, 2011 03:21 PM
Rainmaker
407,621
Michelle Francis
Realtor, Buckhead Atlanta Homes for Sale & Lease
Tim Francis Realty LLC

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

September 30, 2011 04:24 PM
Rainmaker
295,931
Dan and Amy Schuman
Luxury Home Specialists
Howard Hanna Real Estate Services

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.

October 03, 2011 09:21 PM
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Rainmaker
407,621

Michelle Francis

Realtor, Buckhead Atlanta Homes for Sale & Lease
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Additional Information

Tim Francis Realty is a boutique real estate firm that offers Residential Buying , Selling, Executive Home Leasing and Property Management in Atlanta, Buckhead and Sandy Springs, GA. Give us a call, ya'll. 404-219-9760