Is renting a home right for you?

Relocation.com Staff

The housing bust has a bright spot for those not ready to buy but looking for a bit more oomph for their rental dollar: it's easier than ever to find a home to rent.

There are many reasons for it. Homeowners who don't want to sell at today's depressed prices are opting to wait for a recovery while still generating cash flow from renting it out.

And as investors start snatching up cheap bank-owned properties, they're more likely to rent them out as they wait for prices to rebound.

The opportunity is there, but is renting a home right for you? There are some things to keep in mind as you do your search.

"A renter should be just as cautious as a buyer when considering where to live," says Joe Russo, a broker in Charlotte, North Carolina specializing in waterfront communities.

If you've always been an apartment-dweller, there are some unique conditions for renting a home. Here's a partial list of things to be aware of:

• Who handles the general house maintenance, utility bills or any home remodeling that needs to be done? You or the landlord?

• Is the landlord easily reached if you have an emergency? Some homeowners who rent out their places might be moving out of state. If that's the case, how will they handle issues at your home? Will they have a property management company in place to quickly respond to your needs? Or a nearby cousin who's helping them out?

• Just as the landlord will be doing a background check on your financial situation, check out theirs. Is the home in danger of foreclosure? If the bank does foreclose, you'll be out a home – the bank won't care if you're paying your rent. Make sure the homeowner is up to date on mortgage payments and property taxes and there are no liens against the property, and make sure the owner is not going through a divorce or other legal travails that could end up with someone else getting control of the house.

• Environmental hazards such as lead paint, asbestos, mold. Homes that are older in particular must be checked out.

• Make sure you go over the lease very carefully, particularly the section about breaking a lease. You can't tell the future, and you might need to break it. Learn about the ramifications.

You'll also want to become familiar with the neighborhood:

• Check out the schools in the area as well as school bus routes, schedules and stops. If you have kids, you will want to know if their school schedule fits your schedule.

• Crime rates in the area. Just because the home is in a single-family neighborhood or the suburbs doesn't mean it's insulated from high crime rates. Check with the local police or search online to find out what they area, and what issues you need to be aware of.

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