If you are considering the purchase of a home with a suite to rent out, it is important to approach it the right way. In such cases as these, you are not buying a home solely to suit your own taste, but must consider the requirements of renters when making your purchase. You must also examine your finances to see if a rental investment property is the right choice for you. Repairs and maintenance are also something that will now be your responsibility. If a renter is less than perfect, you’re going to have to deal with that – around the clock. Many people find that having a suite rented out in their home brings them much handy cash, but also comes with attendant responsibilities.
Buying a home is a very personal decision, but buying a rental investment property is not. You must examine the rental market in your area and choose a home that may not be best for your personal needs, but that is more attractive to renters. You might also have to sacrifice some of the amenities you were hoping to find in a home in order to get the right rental suite.
You also have to make allowances for what your home is going to cost in the event that you cannot immediately find anyone to occupy your suite. Sometimes it takes time to find the right renter – do you have the cash to pay the mortgage while finding suitable occupants? Once you do, you’re not going to be rolling in cash, however. Keep in mind that the rent you collect is not all going to go into your pocket, but can and should be used as a way to increase your savings so that repairs and maintenance do not catch you unawares.
Owning your home means that you take on all the maintenance and repair, but it also means that you may not have the leisure to fix some things at your convenience. Renters have the right to have decent facilities and if the fridge stops working or the roof starts leaking, you’re going to have to fix that within a reasonable span of time, which means having the money available to pay to repair or replace malfunctioning appliances and materials.
Having a rental suite can greatly decrease the amount of money you pay on a mortgage, but it does come with new responsibilities and expenses. With a careful examination of your financial situation, preparedness and the current rental market, though, you can definitely buy a home that will produce income to offset some of the expenses associated with owning a home.