Keller Williams Realty
Commerce Market Center
The eviction process can be quite lengthy. And the house could be trashed by then. Then in order to sell you may have to put thousands more dollars in to getting it in selling condtion or maybe even rentable condition again.
I would just make sure that your house is competively priced and the prettiest penny on the block. These are the biggest factors in getting your house sold. Even if you don't get what you are hoping for, you may get a very good deal on the next property!
If you are thinking about renting I would try checking with a local rental association in regards to rental amounts. They are usually quite helpful!
I hope this information helps! Best Wishes!
Just by looking in the Multiple Listing Service you should be able to get a ball park rental figure. (well that and your current total payments plus taxes and insurance) Ideally you'd like to have a positive cash flow before taxes.
I suggest looking at your mortgage to make sure there are no clauses preventing renting of your home. Then, review a lease agreement. There are companies that manage everything for you, for a fee of course. Missy is correct, you can expect normal wear and tear on the home that will have to be repaired before marketing the home again.
I've rented homes before, yes, there can be problems with non payment of rent. Once, the people chose not to pay for gas or electricity and the utilities reverted the payments back to me. (that was fun) So take some time to learn what steps it takes to evict tenants before you run into a problem.
Here is something the State puts out for Landlords and Renters http://www.michigan.gov/documents/Landlord__Tenant_Guide_10-2005_14
With anything when Risk / Reward is involved, you have a decision to make. You weigh the Pros with the Cons and arrive at what choice works best for YOU. You can set the criteria of what a prospective tenant needs to meet (i.e. a minimum credit score of X, have to pay X amount per month, have to sign a lease for X amount of months, etc.). The only thing you can not do is discriminate on who you Lease the house to.
I have done numerous Leases, especially over the last few years, and the Owners were pleased. There are certainly the situations you reference above where the property is not cared for, etc. Again, risk vs. reward.
As for establishing the rental price, it is important to have a bead on what is happening in the area. What are similar homes renting for? What are your costs and would the house cash-flow, or close to it?
All things to be thinking about, as Leasing is very popular right now, and I think will only get more prominent. Thank you for the question and best of luck...
Just have your Realtor get permission to pull their credit. Typically you do have some maintenance issues or decorating to be done after tenants leave so budget. In Michigan you can only take 1 and a half times the rent in a security deposit.