Posted on: 5 August 2019
Homeownership brings a great number of benefits, but when you need to move and are not able to sell your home because the real estate market is down, you will need to consider some alternate options to take care of your property. Because you still need to cover your mortgage payment in addition to your other new expenses, you will need to look for a renter to stay in your property and help you cover the costs. Here are some tips to help you manage your vacant property so you can cover its costs and protect your investment.
Hire a Property Manager
When you own a house that is sitting vacant, you need someone to look after it and manage it and any renters who live in the property. A property management service will be able to handle all these tasks and more relating to your house to make sure it is managed and it is rented so you can receive a cash flow to help cover its costs.
Look for a property manager that will manage the property for you locally while you live elsewhere. They will keep in contact with you regarding its rental status, any problems, and other issues that may arise with the management. For example, your property manager will let you know when they find a qualified tenant. They will also let you know when a current tenant gives their notice to move out after their rental contract has ended.
Make sure you calculate into your costs the property manager's management fee each month. This is traditionally a percentage of your property's monthly rent and also a rental fee when they find a renter for the house. But overall your property manager will handle all the management tasks to keep your house rented, cleaned, repaired, and managed while you are away.
Short Versus Long-Term Rentals
Your empty house provides an opportunity for a rental for two types of renters. One option is that you can look for short-term vacation and traveler rentals, such as individuals who would traditionally stay in a hotel but need lodging with more amenities that a house can provide. Short-term renters who rent your home will have access to a full kitchen, on-site laundry facilities, and several bedrooms to sleep multiple people who may be traveling with them. You will need to set up your house to have basic furnishings, linens, and kitchen provisions.
You can also rent your home long-term in a more traditional year-long lease. In this type of rental contract, the tenant brings their own possessions and stays for a longer period of time, but will pay a more economical rent versus a short-term vacation or traveler rent rate.Share