If you're looking to buy a second home, you might think it's a good idea to rent out your current residence. And, in fact, becoming a landlord can be a great money-maker. Even if you don't gain income from the rent, your property will be building equity over time. However, there are some things you should know about renting out your home, such as:

YOU'LL HAVE TO PAY FOR REPAIRS

Maintenance, repairs, remodeling and other basic home costs will have to be paid by you, not the renter. And, unfortunately, not all renters are respectful of the property. One wrong renter could end up costing you thousands in damages. Be sure to carefully screen renter applications before choosing a tenant for your home, especially if the house has sentimental value to you.

YOU'LL HAVE TO BE AVAILABLE

Unless you hire a property management company--which typically costs about 10% of the monthly rent--you'll have to be readily available whenever the tenant calls with problems or issues. If the water heater breaks, a pipe starts to leak or a window gets broken, it will be your responsibility to inspect the situation and repair it. If you plan on being a "hands on" landlord, it's probably best that you live reasonably close--within driving distance--of your rental property.

YOU'LL HAVE TO BE FINANCIALLY SAVVY

Being a landlord requires a lot more than just collecting the monthly rent check. There are tax issues related to rental properties--both advantages and disadvantages--that you should know. Moreover, there will be financial issues when you sell the property. And many landlords find it smart to run a credit check on tenants, so you'll need to know the basics of obtaining and reading a credit report. Here is a list of recommended Mortgage Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.

There are a lot of advantages to renting out your home--the property gains equity while, essentially, someone else pays your mortgage. And you don't have to feel rushed to sell, especially in slow housing markets. But before you decide to become a landlord, make sure you carefully research both the pros and cons.