With credit tighter than it has ever been, there is a serious demand for home rentals from those unable to obtain mortgages.
With credit tighter than it has ever been, there is a serious demand for home rentals from those unable to obtain mortgages. There is also a serious deficiency in the number of homes for rent. Because of this, some homeowners have begun utilizing a Rent My Homesystem, whereby people rent the homeowners primary residence.
Unlike traditional investment property, these rent my house systems are for people whose home has been their primary residence. Now, perhaps because the kids have moved out or there is simply a demand for less space, these homeowners are looking to downsize. However, because of this tight credit, they are finding few people able to purchase the home. Therefore, they simply rent out the primary residence and move into an apartment or condo, using their home to make money.
This situation benefits both parties: a young family is able to get the space they need to grow the family, while the homeowner is able to make a profit from their residence even if they cannot sell it. These rent my home systems are especially popular in areas that have been hard-hit by the recession. People should look into their local housing guides to find prices of apartments and homes in their area to see if this is an arrangement they would be interested in.
Analysts expect the housing market to remain lower than average for the next few years. Credit, too, is still likely to be tight as banks and financial institutions seek to deleverage from the downturn. Not only that, some people have taken an irreparable hit to their credit thanks to losing their home. All of these factors indicate that these home rental situations will remain popular in the near future. Therefore homeowners are advised to seek out these opportunities while they still exist.
If interested in these arrangements, homeowners should seek out local websites and apartment listings to find how much other homes are renting for in the area versus the price of apartments. If a person can make significant money renting their home while finding an apartment for a reasonable rate, they are advised to put up a listing. Once they have an agreement in place for someone to rent the home, they can then move into an apartment, knowing that rent is covered plus additional expenses. This allows the homeowner to build equity in the home for free while also living rent free.