I’m moving out of the house soon and will be living rent-free with my wife at my parents' place in the Bay Area due to some recent life changes.Here’s a breakdown of my situation:Location: Sacramento, CA (4 bed, 2 bath, recently renovated)Current mortgage payment: $3,940/month (including escrow)Mortgage balance: $475,000Current home value: $515,000 - $535,000 (based on comps)Rental estimate: Property management companies are quoting $2,600/month (with fridge/washer/dryer included), but some websites suggest it could go for up to $3,000/month.Planned budget:$540/month for capital expenditures and maintenance$100/month for lawn careTenant to cover utilities (gas, electricity, water)7.5% vacancy rateWe bought the house thinking it would be our forever home, but with our current situation, I’m trying to figure out the best long-term plan.

Exterior maintenance and yard work are usually handled by someone else.

Give them a triple net lease (meaning they pay rent, and they're also responsible for insurance, utilities, and maintenance).

Since they don't all go up, we do a maintenance inspeciton to ensure there is not a leak or running toilet then we increase rent to compensate.

The property had a large amount of deferred maintenance.

They've lived in the home for 7 months and have made maintenance requests every single month.

The primary motivators in retaining it and dipping our toes into the rental space are: 2.50% APR and sufficient margin to cover maintenance/capex/vacancy based on "recommended percentages of gross rent."

Also common areas that need maintenance, lighting, that will be on your bill.- Inspectors: definitely make sure everything is to code.

Hiring a Property ManagerManaging Yourself:Control: You have direct control over tenant selection, maintenance decisions, and overall management style.Cost Savings: You save on property management fees, which can range from 8-12% of monthly rental income.Challenges: Being across the country means responding to emergencies or maintenance issues can be tough.

They neglected to mention that SROs (single room occupancy, aka lodging house, aka rooming house) also means likely very high maintenance, necessitating supervision and hands-on management.The property had just dropped out of contract because the first buyers couldn’t get bank financing.