If You Can't Find a Buyer, Consider Renting

Physician's Money Digest, April 2006, Volume 13, Issue 4

Investor's

Business Daily

The real estate market is beginning toshow signs of cooling off in the comingmonths, and owners who have held on totheir second homes may have missed thereal estate boom. According to , owners may have a betterchance of finding a renter for their propertyrather than a buyer. Rising interest rateswill keep mortgages out of reach forrenters. Research firm Reis confirms thisinability of many renters to buy a home,stating that vacancy rates have droppedfrom 7.1% in 2004 to 5.8% in metro areas.If you do decide to rent out your property,there are several factors to consider, such asexpenses. Anticipate that you will have tocall a plumber or electrician at least onceper year in addition to lawn maintenanceand care. You will also have to pay for utilitiesuntil you rent the home, and even afterward,depending on the lease. If your propertyhas a mortgage, make sure you haveextra cash on hand to cover the monthlypayments. It could take as long as 6 monthsto find a tenant. To determine rent, askagencies for prices on similar properties ordo some Internet legwork on Web sites suchas Rent.com and Rentnet.com.