What if your home does not sell in the alotted time frame...what are your thoughts on renting your house to?

Asked by Shakira, Philadelphia, PA Mon Dec 31, 2007

such organizations like section 8 where the rental money is guranteed.

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michele cado…, Agent, Brooklyn, NY
Wed May 11, 2011
Renting could be a good option provided that the rental rates in the neighborhood will we enough to cover the monthly mortgage and other expenses such as water , sewer, taxes, landscaping etc..
0 votes
Bruce Lang, Agent, Philadelphia, PA
Tue May 10, 2011
This is a bigger issue than section 8 and the paperwork to get qualified takes 2-6 months. The real issue is renting. In recent years rents are rising and this is often the best plan to keep your credit even if you are taking a small loss. This is an individual decision you should make with your financial advisors
0 votes
Paul Nettlef…, , Lanham, MD
Thu May 5, 2011
This is a difficult decision. The first thing to consider is will the amount of money you will get for rent sufficient to cover your expenses. Your expenses will include more than your mortgage, it may include repairs and upgrades necessary to comply with state law. Who will find you a suitable tenant to rent your property? Who will screen this tenant? I real estate professional can assist you with this of course but it takes time to find a renter. Also, do you want to handle the management of the property on your own? You can address this issue by finding a property management company but those companies will cost money and will reduce your profits or increase your loss.

Lastly, have you thought of the financial issues pertaining to qualification for your new purchase? Do you need the money from your home to purchase your new home? If so, you won't be able to do this. Will the full mortgage amount be counted against you in qualifying for your new house?
0 votes
Joe Michalski, , Philadelphia, PA
Wed Jan 2, 2008
Shakira, renting is one way to offset the burden of the second mortgage (assuming you already have purchased a second home and didnt; need the funds from the sale of the first.)

Section 8 has several requirements that must be met for your home to qualify, but once it does, the income is a nice revenue stream. The caveat is that you can't excercise much discretion in selecting your tenants and I have heard many stories about tenants who trashed the house, and cost the landlord thousands.

I would suggest talking it through with a local Realtor who handles Section 8 properties.
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