- 7 years ago
- Wedding: November 1999
You ladies always have some great insight, so I thought I’d see what you all thought. Sorry for the lengthy explanation!
I own a house with my sister. She lives there, I live with my husband, but she is moving for a new job and the house will soon be empty. It is also currently for sale.
We have decided to rent the house out to help with the bills, and here’s where I need some suggestions:
We can either rent the house through our agent or rent to a friend.
The pros to renting to our friend: He is a police officer (trustworthy, good for the neighborhood, has a steady job), he can continue to show the house to potential buyers, I know he will take care of things like the yard and any maintenance, and we can keep our homestead exemption. My sister can also keep some of her things there, and stay the night if need be (she works for a university and sometimes has to work at different campuses).
Cons to renting to our friend: He is currently going through a divorce, his wife is keeping their house, but he’s still having to help her make payments for now, so he can only afford about $400/month. This is less than half of our mortgage/insurance/taxes, but it is better than nothing. But he did suggest that he could try to find a roommate (who would likely also be a policeman).
Pros to renting through agent: It would really just be that we could likely bring in closer to $800/month (but there would also be a 10% charge for management + 1 month’s rent for commission).
Cons to renting through agent: We won’t know the person, if we “officially” rent, we can’t have the house for sale at the same time, we will lose our homestead exemption, and renters are far less likely to take care of the house than our friend.
So that’s where we are at right now. Thoughts?