With home prices at low levels and no substantial increases on the foreseeable horizon many homeowners, forced to move, now find themselves in the unenviable position of Landlord.  Many homeowners that have moved for jobs, greener pastures or simply to hold on till the market rebounds cannot sell their homes because they owe more than they will sell for.  Rather than walk away (my hats off to them) they have choose to rent the property until such time as they can sell for at least what they owe. In many cases here in the High Desert renting under this type of situation means that the rent check does not cover the cost of the loan payment.

Determining the correct action to take in this type of situation is complicated.  To mention just a few of the considerations you will be looking at:

1.    The timeframe at which you think you will be able to sell

2.    Rent you currently can receive and how that balances with your loan payment

3.    Property taxes, insurance and estimated maintenance that will be required

4.    Management fees (if you use a property manager)

5.    Vacancy periods

In many cases it is going to be hard to see anything but a financial blood bath.  Check with your accountant to help analyze you long term exposure and whether you might be better off taking a hit now and moving on with your life.

For more information about being a landlord: Becoming a Landlord

Read more information about this subject: The Reluctant Landlords

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