In today’s real estate market, when selling your home, it can feel like you have limited options. Values are just beginning to stabilise, and buyers can be scarce. If you are able to sell your home – go for it! This is the best option. But what if you can’t financially afford to sell?
Consider becoming a landlord and renting out your property to a qualified tenant until you are in a better position to sell.
This will provide you with a stream of revenue on your property while successfully moving transitioning into your next home. With a shaky real estate market and increased lender requirements, many would-be buyers are opting to rent versus buy. According to recent news, vacancies are at an all-time low across the country. This means the chance of successfully renting out your property is very good. Before you jump into the rental market though, consider the following:
• Don’t necessarily expect to cover all of your property expenses each month. Though the rental market is hot right now, if you are locked into a high monthly mortgage payment don’t expect it to be covered by rental income each month. Rental prices are dictated by market value. The rental income may only cover a portion of your total costs.
• Screen your tenants carefully. Not only is it important to make sure you have a Tenant that will pay you each month and keep the home in good shape, but you also have to remember that the Tenant’s behaviour will impact your neighbours and community. Choose wisely.
• Mentally prepare yourself to accept that somebody else will be living in your home. This means that typical wear and tear will happen while the Tenant is there. This is normal and should be expected. Any major damage should be covered by the Tenant.