There are several components to the answer.
(1) be prepared for the market to take a long, long time to "recover". Industry analysts are universal in projecting that inventory will be large and prices low for many years to come. In most areas, prices have dropped 20-30% since 2006 and prices will not recover to the 2006 highs until 2014. We expect prices to continue to drop through the 1Q 2011 and then creep back up over several years. The bigger problem, though, is inventory. Depending on the price point, in St. Charles we have 9 months inventory at the $200,000-$300,000 price bracket (not too bad) but for homes over $1,000,000 the inventory is a staggering 90 months -- over 7 1/2 years! So "when the market improves" will depend on the price category of your home.
(2) Whether your home is a good candidate for a rental will depend on the condition of the home. If the home is well maintained, has good mechanicals (AC, furnace, hot water heater), a good roof, good plumbing and so on, it will be less of a hassle for you than a home in poor condition. As a landlord you will be required to meet tenant expectations (and local laws) for safety and utility of the premises. Will you be nearby to handle middle of the night emergencies, or will you paying service providers (plumbers, locksmiths, etc.)
(3) You will be allowing a stranger to occupy the home who may treat it better than you could, or conversely with a complete lack of regard to the fact that it is your property.
(4) The final and biggest question: will the tenant pay you the rent every month? The tough economy has produced an increasing number of renters here in the western suburbs. Some will be great tenants, others are living on the edge. You will have to follow laws about collection and eviction if you end up with a non-payer.
I put up a post about "market recovery" last week. Let me know if you have any questions.
The market has improved quite a bit in Kane County overall. If you are interested in a Neighborhood Market Analysis, or specifically interested in the current value range for your St. Charles home, contact me.
The Median Sales Price of a home in Kane County, from July 2012 to July 2013, increased by 20% It was $145,000 in July 2012 and increased to $174,000 by July 2013.
During the same period the Inventory of Homes for Sale decreased from 4,116 to 2,561. That was a decrease of 37.8%!
This is a GREAT time to consider selling your home as the market HAS IMPROVED! Contact me if you are interested in further details about selling your home or would like a copy of the report for Kane County.
I would recommend that you weigh your options between selling and renting to determine what choice is best for you. There are pros and cons to renting.
I service the St. Charles area and would love to sit down with you and discuss the current market conditions, provide you with both options available to you so that you can make a decision.
Renting is not a bad option. I am just wondering what your motivation is? Do you have a time frame in mind? Are you looking to upsize or downsize? There are homes selling in St Charles if they are priced fairly and are in good condition. I am a realtor in the St. Charles & Geneva area. I would be happy to weigh your options with you. I can run a market analysis to see what is happening currently in your nieghborhood. Then you can decide what is best for you. Let me know if I can help!
I think it's a good idea. There are a lot of renters out there right now. St. Charles is a sought after town. Why don't you run an ad and see what happens? If you get a good renter, go for it. Try putting an ad on craigslist chicago, it's free.