I realize this is probably a loaded question, but what goes into renting out your home? What are the pros and cons? What's the minimum amount (i.e. mortgage + ?) that should be asked from the tenant? Are property taxes different? Are any additional expenses required from the homeowner if the property is switched from a primary residence to a rental property? I know nothing about this and am just looking for some basic info. Thanks! :)
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Pros:
- You have income coming in (which hopefully is more than your mortgage payment plus expenses)
Cons:
- They might destroy/damage the home
- They might miss payments and then you go through the lengthy eviction process
- You pay income tax on the rent collected
The amount you charge has no relation to your mortgage. You simply do the math on how much your neighborhood charges for X square feet and then decide whether or not it can cover the mortgage. If it can't, it's not profitable and you pay income tax on the rent collected. So do the math and see how much landlord insurance is (crucial to have this!) and how much property tax is and divide it by 12 and if you can charge more for rent by at least several hundred per month, go ahead.
The property taxes remain the same.
Important: rent collected counts as income and has to be filed during tax filing time.
njyogibear
also, you need to tell your homeowner insurance company if you are renting your house, and the policy will cost more. another thing is, your city might require you to register as a landlord, and the city might charge additional fees or require extra inspections for a rental property.
Lndlrdlisa
Mr. landlord dot com has loads of info.