Can't Sell Your House Quick Enough? Try Renting It Out First Instead

Sometimes you do everything you need to do to sell your house, but you still aren't getting any offers. If your house has been sitting on the market for months without any bites, you might want to consider renting it out instead. This is also a good move if you're planning to sell in a buyer's market, and want to wait until you can fetch a better price. The biggest advantage of renting your house when it's not selling is to help offset your mortgage payment — and if your mortgage is paid off, the rent from your house can be a much-appreciated source of income. 

When demand for rentals is high, you may have a much easier time finding prospective renters than potential buyers. Hopefully you've prepared your home to sell for more money without spending tons to get there, so it should be all spruced up and ready to rent out. Still, you'll need to first examine the pros and cons of renting out your home before you take your property off the market and put up a "For Rent" sign.

One advantage of renting out your home is that if there's no rush to sell, you can sit back and wait for the perfect market conditions to fetch the best price. If you have a low mortgage rate, you might be even more motivated to hang on to that property and use it as a rental rather than selling. Do you live in a location where real estate is gaining value year after year? If so, this appreciation is a huge benefit for waiting a while to sell. You'll make money on both the appreciation of the house, and the rent it generates. 

Of course, there are also disadvantages to turning your house into a rental property. As the owner of your rental house, you'll still be faced with maintenance costs, and a lack of income if the rental becomes vacant. It can also be a lot of work, both with finding and dealing with tenants. If not vetted properly, you could end up with tenants who cause costly property damage or annoy your nice neighbors. Another motivation to keep your home on the market is that rental income might not prove to be a good return on your investment. There are a lot of numbers to crunch, and you may need to talk to a financial advisor before making this decision. In the end, when you do try to sell your house, make sure you've done the top 3 things to sell your house faster — such as refreshing your home's paint.