How would i go about renting out my house, i need to move and the market stinks so i figured ill just rent it?

house? i mean i need to understand about the taxes, the pros and cons of everything!? thanks!How would i go about renting out my house, i need to move and the market stinks so i figured ill just rent it?
For the rental part, you can serve as the landlord or hire a rental company to handle that. A rental co is recommended if you live more than 1-2 hours away. You would advertise for a rental in all the usual places (Craigs list, paper etc)--post up on the local college bulletin board if that is an issue etc.


Some basics include how are you going to handle utilities? You will need to maintain fire etc insurance--your insurance co can help you with what kinds of coverage you need to keep. You will also need to set aside some emergency funds--to cover repairs, and the mortgage between renters.


You have to be careful about how to select your renter--do not discriminate against anyone, and be sure and understand all the laws in your area about deposits for security, first %26amp; last etc.


Your taxes will need to be done by a professional as it becomes complex in depreciation and capture at sale. Rental income is considered income but can be offset by depreciation etc but really needs a professional. Your property taxes could theoretically change if you have an owner-occupied exemption. Otherwise you still owe them as before and they also offset the rental income.


The cons of rental are the obvious--the wear %26amp; tear on the house can be significant, even with ';good tenets';--no one takes as good of care of a house as the owner. You can not put off some repairs if they occur because by law you need to provide a certain environment for the tenet. And, can you make all the payments on the place if its vacant? With the market the way it is, this could be several years. Also, you lose the homeowner exemption for capital gains upon selling if you rent it out more than 2 out of the last 5 years prior to sale. You will also ';owe'; captured depreciation at the sale. Another con is the headache of having to deal with rental property--fix it up between renters, worry about getting the rent on time, etc.


The Pros are your house could possibly return in value, but the experts predict several years.


I was relatively lucky, my condo was worth zero after the Northridge earthquake but I found a renter and when he moved out, I sold it during the height of the seller frenzy. But even tho he was a good tenet, the place was still a complete mess (think harleys in the living room) and it took me a year to make all the repairs %26amp; clean it up (I had to do it myself on weekends %26amp; when I had extra cash).


The bad side is you get a totally psych renter and have to evict...be careful.How would i go about renting out my house, i need to move and the market stinks so i figured ill just rent it?
I have been in the rental business for the last ten years. I tell all of my family, DO NOT RENT OUT A HOUSE!! Do you know how much of your rights are stripped from you when you rent to someone? It is VERY difficult to get rid of them, unless you move back into the home yourself.


Not to mention the prohibitive cost of trying to get rid of these people through the court system!!


Good Luck whatever you decide, but make sure you do your homework!
Hire a management company. It's worth it. They will do credit checks, interviews, show the house, etc. Takes away the chances of getting bad renters!
You need to talk to a real estate professional that also deals with rental management. They should be able to answer all your questions regarding how to go about it, the costs and tax questions. If they don't know the answer, they should know who to refer you to.