It’s Not GOOD News nor BAD News. It’s Just THE News.

• 
• 
• 
• 
  
• 20
  inShare

  Many people want to look at any news on the housing market and immediately categorize it as either good or bad. In reality, most news about real estate is not ‘good’ nor ‘bad’. It’s just news.
Current home values are much lower than just a few years ago. Many see this as bad news. However, there are two competing parties in every real estate transaction. When a house sells today, 50% of the people in the transaction (the sellers) could see the lower prices as bad news. However, the other 50% (the buyers) probably see this as great news.
Many have said the struggling global economy is horrible news for the real estate market. But, the current economic challenges have also brought us sub 4% mortgage interest rates. We will see the eventual resurgence in the economy as good news for housing values. Let’s just realize that, at that time, we will also see rising mortgage rates as bad news for buyers.
There will be challenges in every housing market. Those challenges will also bring opportunities. Spend less time trying to categorize the news and more time highlighting the opportunities the market presents.

Should I Rent My House If I Can’t Sell It?

• 
• 
• 
• 
  
• 53
  inShare

There has been a lot written about how buying a home is less expensive than renting one in many parts of the country. Rents are skyrocketing and homes are at bargain prices. These two situations are also causing some sellers to consider renting their home instead of selling it. After all, they can get great rental income now and perhaps wait until house values increase in the future before selling.
This logic makes sense in some cases. We believe strongly that residential real estate is a great investment right now. However, there is a huge difference between deciding you want to become an investor (and landlord) and deciding that renting your primary residence might be ‘easier’ than trying to sell it. As a real estate professional, it is your job to educate the homeowner to the possible challenges that might arise if they rent their home.
Here are some questions every potential landlord should consider:

10 Questions to Ask BEFORE Renting Your Home

1.) How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).
2.) Because of the economy, over ten percent of homeowners can no longer make their mortgage payment. What percent of tenants do you think can no longer afford to pay their rent?
3.) Have you interviewed a few experienced eviction attorneys in case a challenge does arise?
4.) Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
5.) Will you allow pets? Cats? Dogs? How big a dog?
6.) How will you actually collect the rent? By mail? In person?
7.) Repairs are part of being a landlord. Who will take tenant calls when necessary repairs arise?
8.) Do you have a list of craftspeople readily available to handle these repairs?
9.) How often will you do a physical inspection of the property?
10.) Will you alert your current neighbors that you are renting the house?