Renting out your Charlotte property comes with advantages as well as disadvantages, and you’ll need to consider both the risks and the benefits when you’re deciding what to do with the home. Your decision will ultimately depend on your financial goals.
The Risks and Benefits of RentingThe biggest risk in renting out a Charlotte property is that you’ll have a bad tenant. If you get someone who doesn’t pay rent or damages the property, you could have high repair costs and you will ultimately need to evict that tenant. Bad tenants cause major problems, and if they break the law or use your property for something they shouldn’t, you could face a lot of your own liability.
Vacancy is also a risk to renting out a property. If you don’t find a good tenant quickly, the property will be empty and not earning you any rental income. If you work with a great property manager, you won’t have to worry so much about long vacancies or bad tenants. When you offer a well-maintained home with a fair price, you shouldn’t have too much of a problem filling it quickly with a great tenant.
Legal risks come with renting out Charlotte properties, and there are many federal, state, and local laws to be aware of. If you break a law or fall out of compliance, it will be costly. Get to know the laws, or work with a property manager who can keep you out of trouble.
The advantages of having a Charlotte rental property include income and long term returns. You’ll have rent coming in every month and your value will increase while you build equity. Real estate investments traditionally outperform the stock market in the long term. You can also take advantage of tax deductions and benefits when you rent out your home.