Of all the impacts that the housing crisis has created, none can create more stress and concern for a homeowner than foreclosure. Perhaps your adjustable rate mortgage has skyrocketed and you can’t meet the payments anymore, or maybe you’ve lost your job and are now only making a fraction of what you once were.
Whatever the case may be, there are options to help you avoid having to default on your mortgage payment. One of the best options if you’re in this tough situation is to rent your home instead of continuing to try and sell it. There are plenty of advantages to renting out your home.
First, renting is usually easier to do than selling. Even though the real estate market has hit rock bottom, the market for rental properties is still strong. Property management companies can usually find a tenant for your home in no time, and will handle the process of screening applicants to ensure that you get the best tenants possible. And while you may not manage to receive monthly rental payments that are much as your mortgage payment might be, the amount that you do get is better than nothing and may be enough to keep your head above water and avoid foreclosure.
If you’re not living in the home you’re trying to sell, it is important that you remember that the vast majority of homeowner’s insurance policies will not cover a home that has been vacant for over thirty days. This is an often overlooked aspect of renting your home that is important to keep in mind. You can change insurance policies, but that could cost extra cash you can’t afford to spend, especially if your property is already facing foreclosure. Renting helps maintain insurance and can help provide you with extra money to help you avoid defaulting on your loan.
You may hate the idea of becoming a landlord. Millions of Americans who are currently renting their property did too, but it became apparent that it was their only option to avoid foreclosure. Property management specialists can make it easy for you since they handle every single aspect of your rental property and take five to ten percent of the rent payment as their compensation. From listing your property and screening tenants to handling the midnight repair calls that landlords hate, they’ll handle the hard work while you enjoy the rent checks. You may not have wanted to become a landlord, but it’s probably better than the alternative.