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Make 2020 the Year You Rent Out Your Home (Especially Your First Home!)

November 13, 2019

If you’re like many people, the holidays are a time to give thanks; to reflect on the year gone by,  and on what lays ahead.

This is especially true for first time homeowners who are worried over whether their purchase was a wise investment.

The truth is, if you’re worried about your financial future and fear you may regret buying the property — you may want to consider making your home an investment property.

By leveraging your property to earn rental income, you can ensure that your house pays itself off and help secure your finances.

Here are three reasons why homeowners should take the plunge and rent out their property in 2020.

1. You’ll Earn Money and Save Too

No matter your age, it’s important to plan for the future and save money whenever possible. This can be difficult for homeowners who are tied up in their investment. Renting out your house, however, gives you that extra income to explore other investment opportunities or put it all in the bank!

2. FHA Loans Make First-Time Home-Buying Easier

Many potential first-time homebuyers think they’re unable to afford a house because of the 20% down payment required for any property. However, in many cases, you can make the purchase even if you have less than 20% for the down payment by getting an FHA loan. These loans are intended in part to help those with less-than-perfect credit scores become homeowners; however, the regulations state that you must reside in the property you purchase.

3. Renting Your Home Will Drive the Real Estate Market

The Research Institute for Housing America recently published data claiming that immigrants will drive 36% of real-estate growth over the next two decades. With more people desiring to become homeowners, you can put yourself in a profitable position by becoming a property owner. This way, if increased housing demand makes the value of your neighborhood rise, you’ll be able to benefit.

Do you have questions about renting out your property? We have answers. Give us a call!

SMART Rental Qualifications

The following are Southwestern Management And Realty Team’s (SMART) guidelines for renting a property through SMART. Each and every application will be reviewed by a member of SMART and could be adjusted depending on credit/income and the application itself. Please be truthful!

Rental Qualifications

  • Applicant MUST be 18 years or older and application fee is $65.00 per person and is non-refundable.

Credit

  • Minimum score of 650
  • No EVICTIONS in the past 5 years
  • No utility collections (gas, power, water)

Income Verification

  • Income MUST be 3 times the monthly rent for good credit 650+ and 4 times if applicant has poor credit but good income.
  • MUST be verifiable
  • MUST be with current employer for at least 6 months.
    **If self-employed—CPA financial statements and/or tax returns are acceptable.

Employment History

(you could be required to show proof if requested, paycheck stubs, etc.)

  • Verifiable employment history for the past 3 years
    **If self-employed/retired/not employed—can verify income with signed tax returns and/or bank statements.

Rental History Verification

  • Verify for the past 3 years
  • Must provide: Landlord Names, and phone number, email (if available) on the online application.

Criminal Background Check

SMART does check—Criminal, Sex Offender and Terrorist database

  • NO sex offenders
  • NO crimes—violent crimes, prostitution, domestic violence, possession of weapons or illegal drugs

Pets

MUST be 30 pounds & under & absolutely no violent breeds—ask SMART for the Pet Policy

  • 2 pets max
  • NO ferrets or snakes
  • NO Dangerous, poisonous or illegal pets
  • NO aquariums larger than 10 gallons

Emotional Support pets are NOT considered a Service Animal and not under ADA laws.

SERVICE ANIMALS ARE OF COURSE ACCEPTED AND WILL REQUIRE THE PROPER GOVERNMENT ISSUED DOCUMENTATION.

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