4 Things That Are Going To Change When You Rent Your House
Hey, I’m Matthew Whitaker with gkhouses, and today I want to talk to you about the four things that are going to change when you rent your house.
So maybe you’ve decided to move to another city and you need to rent your home, or you’ve even bought another house in the same city, but you’ve decided to rent your home instead of selling it. You need to know these four things that are going to change.
So let’s take a look at them.
1. Taxes – The first thing that’s going to change are taxes. You need to be mindful of the way the government treats a rental home versus a home that you live in. This has to do with your homestead exemption. Sometimes taxes as much as double. In areas where we manage, taxes as much as double when you rent your house versus living in it. So once that homestead exemption’s removed, you’re going to pay a whole lot more in taxes. You can check with your local county to find out exactly how that’s going to affect you.
2. Insurance – The second thing to be mindful of is how insurance companies will treat a rental house versus a home you live in. Insurance companies see homes that you live in as much less risky than homes a renter lives in. Now, this doesn’t mean that insurance is going to double, like some taxes do, but it will increase. I would expect to spend an extra 15 to 20% on insurance when you move from a house that you live in to turning it into a rental house.
3. Repairs – The third thing you need to be mindful of is you’ll have a heightened sense of repairs. I always think of this as you’re willing to step over the dead bodies in your house much more than a tenant’s willing to. So, I always take a kitchen cabinet drawer. Think of a kitchen cabinet drawer that wouldn’t close. Maybe you were willing to live with that repair, but a tenant is not necessarily willing to live with that repair not being made.
So you’ll also be more cognitive of the money that gets spent. Let’s say your air goes out. You’re living in the house and your air goes out on July fourth. You will pay whatever it costs to get your air conditioner fixed. Well, if a tenant’s air goes out on July fourth, you’re not directly affected by that. So you’re much more mindful of the fact that you’re spending money, whereas in one case you had an emotional attachment to it. In the other case, you’re just very mindful of the actual dollars that get spent. So that’s the third thing you need to be mindful of, is just a heightened sense of repairs.
4. Access – The fourth thing you need to be mindful of is your access to the home is going to change. Now, it may be weird that you’ve lived in a home for years, and now, all the sudden, you can’t necessarily just walk through the home and open the door and walk in the house because of landlord/tenant laws. Landlord/tenant laws require that, for you to walk through the home, you serve some sort of notice.
We even had owners that thought they could keep the storage building in the back and keep their stuff in it. Well, the tenant, when they rent that home, is going to want full access to the house. That includes storage units, basement. The whole house is theirs. So you need to be very mindful of the fact that your access to the home is going to change.
I hope this video has been very helpful to you in knowing the four things that are going to change. If you have any questions, I hope you’ll give us a call, and we’d love to answer them.