What's the rental market like right now? (rentals, mortgage)

[martiniqus]

We are looking to buy another house and rent our townhome. Anyone heard what the market is like right now for rentals?

[douknownam]

it isn't what it use to be... however, if you charge what the current market accepts you shouldn't have a problem... look up what others in your area are charging for a similar property, otherwise you'll have a vacant TH for several months (learned my lesson the hard way).

Hiring a reputable agent wouldn't hurt either, some agents will offer to secure a tenant for you without managing the property (the fee varies). An agent is beneficial, as they are familiar with the area and comps in the rental market. They can also advise you on what you can do to make your property more appealing to a potential tenant and all of the intricacies of being a landlord. I ended up hiring one, but only because I live out of state.

A fair warning-- you need a substantial savings amount to offset and potentially vacant months for your rental property (e.g. between tenants, etc). Unless your mortgage is that much lower than the potential rental income (where you're making $), it may not be worth your while to dive into the landlord business.

[cfIfan]

I should also add is your home in a short term rental area or not. This will also give you greater flexibility on renting out the property. If your going to be renting out on a weekly basis in a short term rental area generally speaking you can rent out for a little more, but you willmore than likely in my experience not have the property rented out for 52 weeks like if you take a long term tenant.

Generally speaking your income would average out about the same. Personally i prefer to market to someone who wants a year lease as at least you know you will have a steady income if you price the property right.

Many realtors also can help with with listing the property and there are some who will just list the property for you and allow you to do the management part. If you live close by this would be a good route for you as you can take care of maintenence and collection issues yourself. If your out of state you would be best served finding a full service company.

Good luck