Misty is taking a three-month vacation and she wants to rent out her house during the time she will be gone. Her mortgage, insurance, and homeowners association fees will run $3,000 during her absence, and she thinks the renter will add another $150 to her utility bills. She therefore wants to charge $3,150 for three-months' rent. Her only prospective renter has excellent references, but he refuses to pay more than $2,000 for the three months. Should Misty rent her house to this person, or leave it empty for the three months? She will have to pay her mortgage, insurance, and homeowners association fees whether the house is empty or occupied. (She is not worried about the safety of her house in her gated neighborhood.)

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The Answer of Misty is taking a three-month vacation and she wants to rent out her house during the time she will be gone. Her mortgage, insurance, and homeowners association fees will run $3,000 during her absence, and she thinks the renter will add another $150 to her utility bills. She therefore wants to charge $3,150 for three-months' rent. Her only prospective renter has excellent references, but he refuses to pay more than $2,000 for the three months. Should Misty rent her house to this person, or leave it empty for the three months? She will have to pay her mortgage, insurance, and homeowners association fees whether the house is empty or occupied. (She is not worried about the safety of her house in her gated neighborhood.)

Misty Is Taking a Three-Month Vacation and She Wants to Rent