Hi friends,
We are living in single family home, but with in one or two month we are moving in another state. We don’t want to sell our home and trying to rent it other wise selling is final decision.
Anybody have any experience for giving their property for rent. I need suggestion what we do or which option is best for us either selling or rent.
Re: Rent or/ Sell the Home... Need Help
We rented our home when we moved to Pakistan. It was really difficult because we had a friend manage it, which looking back was a mistake. They rented it to "friends" of theirs, who did some damage. We were trying to be economical and save the money it would have cost to hire a property manager.
If we had it to do over we would look for a property manager, oftentimes real estate offices can help you find one, hire one we felt comfortable with, and insist on credit checks and a deposit.
In our case the renters ruined the carpets, brought in several cats even though we said "no pets", and just didn't take care of the house. We had to have the downstairs carpets replaced, the bathroom floors replaced (water had seeped under the floors), and the kitchen was a filthy mess. We replaced the stove and all of the cabinet doors because they were coated in grease and something sticky. All that and they skipped out on the last two months rent. Our "friend" had never really inspected the house while his friends were living there. By the time we paid for the damage it cost more than closing costs on a new home in the same neighborhood would have cost. We couldn't even take them to small claims court because they moved back to Pakistan.
Is there a reason why you don't want to sell? If I were going to rent a property I would make sure that I was in the same town or had someone dependable nearby to check on it regularly.
Re: Rent or/ Sell the Home... Need Help
^very good advice above. Its a great thing to own a property, especially an "extra" one, the advantages tax-wise abound. So if you can do it, and if you can find someone who can manage it properly then thats the way to go.
Re: Rent or/ Sell the Home... Need Help
owning a home is a wonderful investment and has great tax benefits as well. If you can afford to keep it...go for it! You can always hire a property manager to maintain it finding tenants....from my understanding it doesnt cost that much to hire someone.
Re: Rent or/ Sell the Home... Need Help
Rent is the best option these, real estate is really down in most of the states. Also, get a property manager as Angle said, they will make sure you get rent on time, they will also take care of maintenance, etc. Check your local real estate agent, many of them do the renting bussiness too.
Re: Rent or/ Sell the Home... Need Help
Personally I wouldn't feel comfortable having an investment property that was too far from me, unless I had plans to use it again myself in the future, or had some relatives in the same city. Employing agents is fine to find the tenants but the management can be more troublesome.
I would recommend that you sell it and buy an additional property in the state that you will be moving to, providing you will be staying there for a while. You should not let sentiments get in the way of a good business decision.
Re: Rent or/ Sell the Home... Need Help
Personally I wouldn't feel comfortable having an investment property that was too far from me, unless I had plans to use it again myself in the future, or had some relatives in the same city. Employing agents is fine to find the tenants but the management can be more troublesome.
I would recommend that you sell it and buy an additional property in the state that you will be moving to, providing you will be staying there for a while. You should not let sentiments get in the way of a good business decision.
in the states the best business decision is to keep ur property if you can afford to do so because the real estate market here is at an all time slump.....people have their homes on the market for about a yr....so she will be paying 2 mortgages....that cant possibly be a good business decision.
Re: Rent or/ Sell the Home... Need Help
in the states the best business decision is to keep ur property if you can afford to do so because the real estate market here is at an all time slump.....people have their homes on the market for about a yr....so she will be paying 2 mortgages....that cant possibly be a good business decision.
You are suggesting that she keeps the property because selling it would be difficult. It may be on the market for a long time and she may end up paying two mortgages for a period of upto a year.
Selling would be difficult.
At the right price anything will sell. If it is not selling then its probably overpriced. Its only worth what someone will pay for it and not what the vendor thinks it's worth.
If it is a buyers market out there in the U.S then she should also be able to buy her new property for cheaper as well...so effectively she would not be in a worse position. She would sell cheap and also buy cheap.
In the long run it would be easier to manage your investment if it is in the same city or perhaps the same state. It can be done having properties far away but its difficult and there are more chances for things to go wrong.
When I talked about sentiment...I mean't that people generally view their property as home even when they have moved out. When you move out its not your home anymore...its an investment property....they need to let go of the emotions that may be attached with the property having been their home and look at it as a business investment.
Disclaimer: I am no expert on the U.S market:)
Re: Rent or/ Sell the Home... Need Help
You are suggesting that she keeps the property because selling it would be difficult. It may be on the market for a long time and she may end up paying two mortgages for a period of upto a year.
Selling would be difficult. At the right price anything will sell. If it is not selling then its probably overpriced. Its only worth what someone will pay for it and not what the vendor thinks it's worth.
If it is a buyers market out there in the U.S then she should also be able to buy her new property for cheaper as well...so effectively she would not be in a worse position. She would sell cheap and also buy cheap.
In the long run it would be easier to manage your investment if it is in the same city or perhaps the same state. It can be done having properties far away but its difficult and there are more chances for things to go wrong.
When I talked about sentiment...I mean't that people generally view their property as home even when they have moved out. When you move out its not your home anymore...its an investment property....they need to let go of the emotions that may be attached with the property having been their home and look at it as a business investment.
Disclaimer: I am no expert on the U.S market:)
it's not because the homes are overpriced....it's because the economy is slow.....people are selling their homes for below the market and are still having a hard time selling here in the US. why should anyone sell their home for a price cut....certainly that IS a bad move?
Finding a good property manager is not a difficult task..at least not here in the US. My sister and her husband own 3 homes (not including their own) and they have property managers handling everything. One home is paid off in cali and now they are renting it out. That's money in their pocket.....without any hardwork!
Re: Rent or/ Sell the Home... Need Help
it's not because the homes are overpriced....it's because the economy is slow.....people are selling their homes for below the market and are still having a hard time selling here in the US. why should anyone sell their home for a price cut....certainly that IS a bad move?
Finding a good property manager is not a difficult task..at least not here in the US. My sister and her husband own 3 homes (not including their own) and they have property managers handling everything. One home is paid off in cali and now they are renting it out. That's money in their pocket.....without any hardwork!
I spent a few minutes typing a reply only to be logged out and having to type again:o .
You say that houses are not overpriced but are not selling because the economy is slow. Then you ask why would anyone sell their house for a price cut.
The price of properties is not set by agents or vendors but by the market. You put the property on the market and have no interest. The market is telling you that you are asking for too much money. The market may be weaker than it was but its the market that decides prices.
You think the property is worth say $500,000 but after a while receive a best offer of $400,000. The market is telling you that your property is worth $400,000 so if you chose to accept the offer then you are not selling it for a cut price but at its current market price. Even assuming that you lose $100,000 on the sale of your property when you buy your new property the vendor may also think that his property is worth $500,000 and yet you offer him and $400,000 and he accepts because he needs to move. So you lost $100,000 and gained $100,000 so you have not made a net loss. Or you have sold at market price and bought at a market price...so how can you be selling at a price cut?.
Agents can do a lot of work for you but I like being close to my investments.
Re: Rent or/ Sell the Home... Need Help
I don't know where Jias lives but here in fl we have like 10 homes to 1 buyer. Lot of choices not enough buyer. Prices have really gone down from 2005. They started going down in 2006 and still going down. It is not the price. Over here builders are giving all sorts of incentives and paying for the closing cost, etc but still homes are not selling...why... because interest rates went really high last year and now something is going on with morgage companies, people are no getting morgages. So I think it is a buyers market for investment buyers who doesn't have much issues with morgage and stuff but not for first time buyers or middleclass buyers, etc etc...
Re: Rent or/ Sell the Home... Need Help
Sounds like a good time to buy if you can get the right deal on some prime land e.g in NY city. I guess you need to get your timing right and voila!
Re: Rent or/ Sell the Home... Need Help
Its very bouyant market here. Its a sellers market...at least in London...here you have 10 buyers for each property.
Re: Rent or/ Sell the Home... Need Help
London for most of the time has been sellers market...
Re: Rent or/ Sell the Home... Need Help
I spent a few minutes typing a reply only to be logged out and having to type again:o .
You say that houses are not overpriced but are not selling because the economy is slow. Then you ask why would anyone sell their house for a price cut.
The price of properties is not set by agents or vendors but by the market. You put the property on the market and have no interest. The market is telling you that you are asking for too much money. The market may be weaker than it was but its the market that decides prices.
You think the property is worth say $500,000 but after a while receive a best offer of $400,000. The market is telling you that your property is worth $400,000 so if you chose to accept the offer then you are not selling it for a cut price but at its current market price. Even assuming that you lose $100,000 on the sale of your property when you buy your new property the vendor may also think that his property is worth $500,000 and yet you offer him and $400,000 and he accepts because he needs to move. So you lost $100,000 and gained $100,000 so you have not made a net loss. Or you have sold at market price and bought at a market price...so how can you be selling at a price cut?.
Agents can do a lot of work for you but I like being close to my investments.
i understand what u are saying?....but why not sell the house (if u absolutely have to sell it) when the market gets better....when it becomes more of a sellers market? you'll get a better return on your investment.
anyone I truly believe in keeping real estate (especially land).....when it's paid off....you are making money in your pocket without any effort or hardwork. It can also be passed down to your children.
Re: Rent or/ Sell the Home... Need Help
I don't know where Jias lives but here in fl we have like 10 homes to 1 buyer. Lot of choices not enough buyer. Prices have really gone down from 2005. They started going down in 2006 and still going down. It is not the price. Over here builders are giving all sorts of incentives and paying for the closing cost, etc but still homes are not selling...why... because interest rates went really high last year and now something is going on with morgage companies, people are no getting morgages. So I think it is a buyers market for investment buyers who doesn't have much issues with morgage and stuff but not for first time buyers or middleclass buyers, etc etc...
Its true, when I went to Florida, there were constantly new communities being built... My brother and bhabhi were living in West Palm beach and it was a BEAUTIFUL house...pool in the backyard, five bedrooms, walk in closets as big as small bedrooms, huuuuuge garage, and four bathrooms! The master bedroom had a huuuuge walk in closet (almost hte size of the bedroom itsself, hottub and separate shower stall in the bathroom and a separate room JUST for the toilet! fully furnished kitchen , dining room etc. All for the price that would get you a freakin studio here in NYC....the home brochures I browsed through showed some really nice houses and for really cheap...prices that are so unheard of here ... :(
Re: Rent or/ Sell the Home... Need Help
i understand what u are saying?....but why not sell the house (if u absolutely have to sell it) when the market gets better....when it becomes more of a sellers market? you'll get a better return on your investment.
anyone I truly believe in keeping real estate (especially land).....when it's paid off....you are making money in your pocket without any effort or hardwork. It can also be passed down to your children.
ya but not everyone can pay right up front, majority goes with morgages or some sort of home loans...so people have to see if they can keep up with thir morgages, etc etc
but ya if your home is fully paid then you should try keeping it...
Re: Rent or/ Sell the Home... Need Help
Its true, when I went to Florida, there were constantly new communities being built... My brother and bhabhi were living in West Palm beach and it was a BEAUTIFUL house...pool in the backyard, five bedrooms, walk in closets as big as small bedrooms, huuuuuge garage, and four bathrooms! The master bedroom had a huuuuge walk in closet (almost hte size of the bedroom itsself, hottub and separate shower stall in the bathroom and a separate room JUST for the toilet! fully furnished kitchen , dining room etc. All for the price that would get you a freakin studio here in NYC....the home brochures I browsed through showed some really nice houses and for really cheap...prices that are so unheard of here ... :(
lol...your description is kind of cute...hehe... but ya with all these amenities and prices buyers are having really hard time selling their homes...:(
Re: Rent or/ Sell the Home... Need Help
ya but not everyone can pay right up front, majority goes with morgages or some sort of home loans...so people have to see if they can keep up with thir morgages, etc etc
but ya if your home is fully paid then you should try keeping it...
but if u rent it out...that income goes towards ur mortgage payment...basically ur tenants are paying ur mortgage...sounds like a good deal to me...no?
Re: Rent or/ Sell the Home... Need Help
we are renting out our home now, we hired a company to manage it and had a real estate attorney walk us throug the process. Our payments currently cover all our housing costs/mortgage/maintaince etc...but since we signed the lease rental prices have increased 25% and we could be earning a nice profit...but we hae another year on the lease to change the price.
What you should do depends on where you own, where you're moving and your own personal situation.
If you're keeping proprety for the rental income or as an investment and you live in a place that it's a good place to own..then keep but if unsure OR if you will find it difficult to save up/buy another place in the new stated you may want to reconsider.
you should also plan on having enough savings to pay for mortgage (if you still have one) for several months if need be while looking for renters or btwn renters...