Renting Better Than a Vacant Home
If a house doesn’t sell, owners should consider renting – and hiring a real estate professional to manage the property. Property management company will screen your tenants and you do have a final approval about your tenant. Renting out a house rather than leaving it vacant is almost always a better option, I tell my clients to plan to rent the property for several years, get some income and “get on with your lives.” Some are afraid they’ll lose a tax-free sale. But sellers only have to live in a home for two of the last five years to claim the capital-gains exclusion, so even if that is an issue, sellers have three years to rent. Once a home is rented, any fix-up costs are tax deductible, points out Rob Massey of Rentals.com. An empty house is hard to insure and it’s a target for vandals. "A vacant house goes downhill fast," says Karen Rhodes, an associate with Happy Home Realty in Chattanooga, Tenn.
If you are living in your home and cost of mortgage is eatting up most of your income think about leasing your basement or a bedroom. This will give you an additional income.
Source: United Feature Syndicate, Lew Sichelman
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