The decision of what to do with one’s largest asset is not often as simple as “buy” or “sell”. There are many factors to consider when re-evaluating a previous homeownership decision.
Smaller properties like apartments and townhomes are more often thought about as investments for rental purposes, but single-family homes can also be used for this purpose. In many areas, demand is high for rental homes and with a limited supply, the return can be quite attractive as tenants may be prepared to pay substantially more for a property that can accommodate their entire family with pets. Home rentals in many Vancouver suburbs and neighbourhoods are generating anywhere between $1.50-2.50/sq ft per month.
In addition to the rising rental returns available in a tight market, there are other factors to consider. People are often put in a position where living in the home they have bought is temporarily inconvenient. Some are offered jobs across town or even overseas. Others need to relocate closer to a relative in need of care. We often see retirees thinking about downsizing, but unsure of whether they’re ready. Or baby boomer parents who wish to keep the family home for their children’s use in the future.
If you are attached to the home and area you are living in and the temporary reason for moving will likely have you back again, why go through the headache of selling the home and then trying to find something similar again? Transaction costs alone could be significant, not to mention furnishing the new home and customizing it for your needs via renovations.
Renting your home for a few years may turn out to be a more economical decision than going through all that hassle, but who would I be renting to and how is my home going to look when I get it back?
To Whom Should I Rent My Home?
We see all sorts of interesting individuals and families that prefer renting to owning. Some are overseas visitors, here temporarily to visit relatives or work. Others just don’t want to have a home restrict their job mobility, or want to invest their savings in something other than real estate. Some self-employed people are not able to get mortgages at the most favourable rates, so they can rent a larger and nicer home than they could afford to buy. People renovating or rebuilding their own homes are also in need of accommodations that are not dissimilar to what they are accustomed to. Those in these situations and others don’t fit the typical stereotypes of renters as transient, low income earners, or those with damaged credit. More often than not, our applicants for multi-million dollar properties are more than capable of taking care of your home the same way they would if it were their own.
If you would like more information on renting your home, or would like to receive a rental evaluation of your property, please contact me. Our team and industry contacts can help you decide what the best decision is for your situation.