In the past, homeowners would sell their current home and use the proceeds to fund the downpayment of their next home. This process, known as “Sell/Buy,” was typically driven by a desire to upgrade or downsize, relocate for retirement, or relocate for a job. However, there is now a growing trend of homeowners becoming “accidental landlords” and choosing to rent out their current property instead of selling it.
The pandemic-era mortgage rates, which are around 3%, are currently difficult to attain through traditional means, making it harder to give up such a low rate with the sale of a property. As a result, many homeowners are opting to keep their property and rent it out for a profit. While this can provide a steady stream of monthly income, it also requires property maintenance and repairs. Homeowners may choose to hire a property management company to handle these issues, but this service comes at a cost.
If a homeowner is planning a temporary move, renting out their property may be a good option. However, leaving the property vacant could result in vandalism or other risks. Renting out the property can reduce these risks, but it also comes with a different set of risks, as the homeowner is now a landlord. Homeowners who owe more on their property than it’s currently worth may find it best to rent it out to gain more equity. Those who purchased their property a while back and were blessed with a low rate and market value increases may find significant value in this strategy.
When it comes to renting out your property, the key factor that can make or break your experience is your tenants. While you can’t necessarily control their behavior, you can take steps to ensure you’re signing a lease with a responsible and trustworthy renter. In Massachusetts, where laws tend to favor tenants, it’s especially important to do your due diligence during the discovery phase. But don’t despair – when you do find a great tenant, renting your property can be a breeze! A reliable tenant who pays on time and takes care of your property can make for a happy and stress-free rental experience.
If you need expert advice on whether to sell your home or start renting it out, contact us today. When considering whether to sell or rent your property, it’s crucial to have the guidance of a knowledgeable and experienced Realtor who will help you navigate all the factors that need to be considered.