You love your house and can comply with mortgage and tax requirements but need extra money for a family emergency. Or, you’ve been transferred to another location and the real estate market is not favorable to selling. Or, you’re having a tough time covering all your expenses and want to explore renting out your home and using that income to pay your mortgage costs. All situations can be relieved if you put your home on the rental market.
Before you consider renting out your property, it is in your best interest to talk to your mortgage lender about this action. There may be rules or limitations in your mortgage concerning renting out your property. For example, if you rent out your property, there could be a risk that you lose the ability to borrow funds from a mortgage lender. That risk could become a reality according to the terms of your mortgage.
If you do not immediately find any restrictions in your contract, your next step is to consult with your mortgage lender. Clearly explain what you plan to do with the property and how much of the property will be used for rental. For example, are you planning on renting out the entire property or just a room? These minute details can make a difference to your mortgage lender.
When you plan on having your tenants subsidize your mortgage through their monthly rent, or locating a tenant to occupy your home when you live in another location, you must plan for periods when your unit may not be leased. Always account for an empty house. In the event that renters aren’t helping you pay your mortgage, you should still have enough money available to make these payments on your own, else you are very likely to risk losing your property.