Some places it just pays more to rent out your home when you move someplace else rather than simply selling it, because it pays every month.
This is for so-called “mom-and-pop landlords” – homeowners who have turned their personal home into a rental rather than selling it when they move.
These are the best places where the amount an owner can charge a tenant is greater than mortgage costs.
At the top were Oklahoma City, Miami, and Tulsa, where homeowners can make an average of $536, $515, and $396, respectively.
Zillow says that rental property owners in Oklahoma City have the biggest short-term financial gains, with profits — the difference between the monthly rent and mortgage payments — expected around $536 monthly, or $6,431 annually. Miami, Tulsa, Cincinnati and Denver round out the top five metros, all with monthly short-term profits above $300.
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Landlords in the San Jose area have the largest long-term financial gains, with profits expected around $8,927 monthly, or $107,122 annually.
Zillow Chief Economist Stan Humphries says that while mom-and-pop landlords are mainly concerned about the month-to-month profit, homeowners considering renting out their properties instead of selling should also pay attention to long-term profit.
In places like New York and San Francisco, which are rental heavy compared to ownership, rental income doesn't usually exceed the homeowner's mortgage payments. But in the long-term, even in those markets profit can be had, when owners account for home equity growth.