Moving for Work? Rent Out Your House and Keep Your Rate

By Matthew Whitaker, founder of Evernest.

Quick disclaimer: I am not your CPA or your attorney. Some of this touches loans and taxes, and the rules depend on your lender, your location, and your situation. Talk to your own tax professional and an attorney before you act on any of it.

If your job is moving you and you don't want to sell your house because your mortgage rate is too good to give up, this post is for you. Here's the plan, with the dates. I'm Matthew Whitaker, founder of Evernest. We have local teams that manage homes for people just like you all across the US, and I wrote the book How to Rent Your Home.

The short version

The short version: A low mortgage rate is an asset, and once you sell the house it's gone. If the rent comes close to your all-in cost and you have a cash cushion, renting the house out can be a smart way to keep it. Make four phone calls first: your lender, your insurance agent, your HOA, and your city or county. Then work backward from your move date at 60, 30, and 14 days out. Before you leave, set up a remote plan, because self-managing from far away rarely works.

Why your low mortgage rate is worth keeping

Say you have a $300,000 loan at 3%. Your principal and interest is about $1,265 a month. Now say you had to borrow that same amount at 6.5%. That's about $1,900 a month. Same loan, over $600 more every month.

Your low rate isn't just a number. It's an asset. Once you sell the house, that rate is gone, and you can't buy it back. There are two more reasons to keep the house. A resident helps pay down your loan while you still own it. And you might come back. A lot of owners I talk to aren't sure this move is forever.

When keeping the house doesn't make sense

There are really two cases.

One: the rent is nowhere near your cost. Add up the mortgage, taxes, insurance, HOA dues, and set aside money for repairs and empty months. In the book, I call that your all-in cost. If rent comes up $300 short every month, you're paying to own an investment. That only works if you're betting on the house growing in value. Know that's the bet.

Two: you have no cushion. In the book, I suggest six months of your full house payment plus $5,000 for repairs before you become a landlord. If one bad month would really hurt you, build the cushion first or sell. Selling is a perfectly good answer.

There's also a quiet risk. If the house sits empty after you move, you're making two housing payments. That's why the dates matter.

Four phone calls to make first

Call one: your lender. Most home loans say you'll live in the house for a set time after you buy, often the first year. If you're past that, renting it out is usually fine. If you're not, a job transfer is often an accepted reason. But don't guess. Call, explain the move, and get the answer in writing. And don't move the house into an LLC without asking first. In the book, I explain how that can trip a clause in your loan.

Call two: your insurance agent. Your homeowner's policy is built for a house you live in. Once it's a rental, you need a landlord policy. Skip it and you find out on the worst possible day. Make sure the new policy starts before your resident moves in.

Call three: your HOA, if you have one. Some HOAs limit rentals or set a minimum lease length. Read the rules before you promise anybody a move-in date.

Call four: your city or county. Some places require you to register a rental or get a license before anyone moves in. Better to find out now than from a fine.

Then add your CPA to the list. More on taxes below.

The countdown: 60 days out

Take your move date and work backward. At 60 days out, get the numbers and the house plan.

• Get a real rent estimate from at least two or three sources. Any single one can miss. Then put it next to your all-in cost.
• Walk the house like a renter would. Fix safety items first: smoke detectors, locks, loose handrails.
• Fix what's about to fail. If the water heater is 12 years old, replace it now while you're still in town.
• Decide who runs this after you leave: you, a leasing service, or a property manager.

The countdown: 30 days out

Get the house on the market.

• Repairs done, paint done, clutter gone, then photos. In the book, I call bad photos the biggest reason a good house sits empty.
• Write your screening rules down before the first inquiry: income, credit, rental history, and background. Use the same rules for every applicant, every time. That's fair housing, and it's also how you get the best resident, because the rules do the choosing.
• List it and price it right. If the first week brings no showings, the price is almost always the problem. Every week it sits empty costs about a quarter of a month's rent on top of your second housing bill.
• Set the move-in date a few days after you leave. That gives you time for a deep clean and a final walkthrough.

The countdown: 14 days out

Lock it down.

• Screening done, lease signed, deposit in hand.
• Rent collection: set it up through a rental platform into a separate bank account. Not cash, and not a payment app.
• Utilities: decide which one switches to the resident on move-in day and keep the rest in your name. An empty house with the heat off in January is a frozen pipe waiting to happen.
• Keys: count every key, plus the garage remote and mailbox key. From far away, a smart lock is worth it.
• Photos and video: before you drive off, walk every room and take dated photos and video. That's your proof if there's ever a question about the deposit.

Five questions to answer before you leave

Now, the part that keeps you up at night: something breaks and you're 800 miles away.

One: who answers the 2 a.m. phone call? Write down what counts as an emergency: an active leak, a gas smell, no heat in the cold, no AC in the heat, a sewage backup, or a door that won't lock. Everything else waits for business hours. Then name the person or service who picks up that call. It can't be you on a plane.

Two: what's your approval limit? Pick a dollar amount, say $300. Under that, whoever handles repairs just fixes it. Over that, they call you first. That one number saves you a hundred phone calls.

Three: where's the repair money? In the book, I say to budget about 1% of the home's value per year. On a $400,000 house, that's about $330 a month. Keep it in its own account so a broken AC doesn't turn into a credit card bill.

Four: how does rent reach you? You need it on a set day, with a statement you can actually read. If you have to chase it, it's not a system.

Five: who sees the house? In the book, I recommend a drive-by every quarter and a full walkthrough 60 to 90 days before the lease ends. From another state, somebody local has to be your eyes.

Here's the truth: self-managing from far away rarely works. Not because you're not capable, but because the setup needs someone local, and that someone isn't you anymore. I never recommend self-managing from more than 30 minutes away. You can also hire out just the leasing, just the repairs, or the whole thing.

One more clock: the tax break on selling your home

If there's any chance you'll sell instead of moving back, here's the rule. In general, if you lived in the house as your main home for two of the last five years before you sell, a big part of your profit can be tax-free. So the day you move out, a clock starts. For a lot of owners, the window to sell and keep that break closes about three years after they move out.

There's fine print. Some of the tax savings you get as a landlord can come back when you sell. And if you have military orders instead of a job transfer, the plan is the same, but there are a few extra rules for service members, including on this clock.

Write your move-out date down. Then ask your CPA one question: what's my last day to sell and keep the tax break?

"I'll just have my neighbor keep an eye on it"

Keep your good neighbor. A neighbor is a great set of eyes, but eyes aren't a system. Walk it forward. The neighbor lets in the plumber, then the AC tech, then the resident knocks on their door because the dishwasher is out. Six months in, you're asking a friend to do a job they never said yes to. Then they go on vacation. Who's your backup?

Your neighbor is your eyes. A real system is your hands: a written emergency plan, an approval limit, a repair reserve, and a local pro on call. A neighbor is a favor. A system is a plan. Move with a plan.

Quick recap

• Four calls: your lender, your insurance agent, your HOA, and your city. Then your CPA.
• 60 days out: numbers, repairs, and who runs it.
• 30 days out: photos, written screening rules, and the listing.
• 14 days out: lease, rent collection, utilities, keys, and photos.
• Five remote questions: emergencies, approval limit, repair money, rent delivery, and who sees the house.

Do that and your move date stops being a deadline. It's just the day the plan starts working.

Frequently asked questions

Can I rent out my house if I move for work? Usually, yes, but call your lender first. Most home loans say you'll live in the house for a set time after you buy, often the first year. If you're past that, renting is usually fine. If not, a job transfer is often an accepted reason. Get the answer in writing.

Should I keep my low mortgage rate and rent out my house? A low rate is an asset you can't buy back once you sell. At 3% versus 6.5% on a $300,000 loan, the payment difference is over $600 a month. It makes sense if the rent comes close to your all-in cost and you have six months of payments plus $5,000 in reserve.

Can I put my house in an LLC before renting it out? Ask your lender first. Moving a mortgaged house into an LLC can trip a clause in your loan. Don't make that move without getting the lender's answer in writing, and talk to an attorney about your situation.

What insurance do I need when I move out and rent my house? A landlord policy. Your homeowner's policy is built for a house you live in. Call your insurance agent and make sure the new policy starts before your resident moves in, so there's no gap in coverage.

How long do I have to sell my house and keep the tax break? In general, you need to have lived in the house as your main home for two of the last five years before you sell. The clock starts when you move out, so for a lot of owners the window closes about three years later. Ask your CPA for your exact last day.

Can I manage a rental myself from another state? It rarely works, not because you're not capable, but because the setup needs someone local. I never recommend self-managing from more than 30 minutes away. You can hire out just the leasing, just the repairs, or full property management.

Is having my neighbor watch my rental enough? A neighbor is a great set of eyes, but not a system. You need a written emergency plan, a repair approval limit, a separate repair reserve, and a local pro on call, so the job doesn't fall to a friend who never agreed to it.

Where to go from here

If you want to know what your house would really rent for, start with a free rental analysis. If you're moving and still deciding whether to rent your house out, my book, How to Rent Your Home, is the whole playbook. It also comes with a set of landlord checklists, including a rent ready checklist.

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