There's a lot to think about when it comes to buying, selling, or renting your home. They are all so intertwined together. Today we are going to talk about the SELLING END OF THINGS. If you are a potential seller, you may decide to rent your property out to tenants, instead of selling. Maybe you want to keep it for future income. Or you may want to avoid capital gains at this time.

Having the income from a rental unit, each month, is nice. If you have a mortgage on the property, the tenant will help you pay it down. Also, it isn’t a great idea to leave your property vacant if you won’t be living there, so tenants can keep your home free from theft and vandalism.

Keeping your house and renting right now may be a good idea in today's economy, since you MAY get more for the property in the future. Rentals are a good investment overall.

Are You Ready to Be a Landlord?

Being a landlord can be challenging, but if you know the pros and cons ahead of time, and you are ready to mitigate the risks, it can also be very worth your while.

First, you need to make sure you are making the best decision for you and your family. That is, can you afford to keep the property? Consider all your possible expenses such as the mortgage payment, municipal taxes, home and/or liability insurance. Always make sure you have a buffer to cover financial emergencies.

You should also ask yourself if you're ready for interruptions in your family life when tenants lock themselves out or if there is an emergency at the property. If not, consider hiring a property manager.

Ensure the Best Tenants are Renting Your Home

Then make sure you find the best tenant possible for your property. Here are some things you can do to get to know them:

• Make sure that you look at the potentials renter’s credit history (for this, you’ll need their written consent).

• Check the past two landlord references. This is very important, unless they never rented before.

• Ask for at least two personal references, that are not related. These will help you get a sense of the tenants' character.

• Speak with their employer. Ensure that their  job is stable and their income will cover their living expenses (or your will be paying them yourself).

• Most important of all, trust your gut instinct.

Keep Your Renters Happy

Don’t forget to consider the cost though. You’ll have regular maintenance to upkeep the property. Remember a happy tenant is usually a longer-term tenant, so you’ll want to keep things in good repair. Also, each time a tenant moves out it will cost you money for cleaning and repairs.

Do your best to make the home as nice as possible, within your budget. It is a good idea to go into the home at least twice a year and check for maintenance issues like leaky taps, clean out the eaves trough, and check for mold in the basement. You may also have to do the grass cutting, yard work or snow removal, depending on your rental agreement. Be sure to keep open lines of communication with your tenant.

We’ve had great experiences with rental properties. They can be a great investment! Just be prepared to be in it for the long haul. In today’s market, it’s a great time to buy. That means, on the selling end, it takes a little longer and you might not get the price you are looking for. More than likely, this will change in the future. Real estate cycles always prove to increase over the year. When it dives, it always comes back. It just takes time.

If you need help deciding if renting your home is right for you, or if you'd like help to get your place rented, just give me a call or email today. Also, check out this video on becoming a landlord.

I just came across this humorous anecdote I clipped from the Creemore Echo in 2003 and it’s sooo relevant in the business of building today.

The earth was wicked and overpopulated.  The Lord instructed Noah to rebuild the Ark and save two of every living thing, along with a few good humans. 

“Here’s the blueprint,” said the Lord.  “You will need to hurry, for in six months I will start the unending rain for 40 days and 40 nights.”  Right on schedule six months later the rains started coming down. 

But when the Lord checked in with Noah, he was weeping in his flooded yard, and there was no Ark.  “Noah,” He roared; “Where’s the Ark?”

Forgive me, Lord,” begged Noah.  “Things have changed.  I needed a building permit.  I’ve been arguing with the inspector about the need for a sprinkler system.  My neighbours claim that I have violated the zoning laws by building the Ark in my yard and exceeding the height limit.  We had to go to the Development Appeal Board for a decision. 

Then Transport Canada and the Department of Highways and Hydro wanted a bond posted for the future costs of moving power, trolley, and other overhead obstructions, to clear the passage for the Ark’s move to the sea.  I argued the sea would be coming to us, but they would hear nothing of this! 

Getting wood was another problem.  There’s a ban on cutting local trees in order to save the potted owl.  I tried to convince the environmentalists that I needed the wood to save the owls, but no go!”

“I started gathering the animals, but then an animal rights group sued me.  They insisted that I was confining wild animals against their will.  As well, they argued the space was too restrictive and it was cruel and inhumane to put so many animals in so confined an area.”

“Environment Canada decided that I could not build the Ark without filing an environmental impact statement on your proposed flood. 

I’m still trying to resolve a complaint with the Human Rights Commission on how many minorities I’m supposed to hire for my building crew. Meanwhile, the trade unions want me to hire only union people with ark building experience. 

To make matters worse, Canada Customs and Revenue Agency seized all of my assets, claiming I’m trying to leave the country illegally as well as with endangered species.

So, forgive me, Lord, but it would take at least ten years to finish this Ark.”  Suddenly, the skies cleared, and the sun began to shine.  A rainbow stretched across the sky! 

Noah looked up in wonder.  “You mean you’re not going to destroy the world, Lord?” he asked.

“No,” said the Lord.  “Your government already has!”

Editor's note:  This modern fable was recently shared with the Big Heart Seniors and sent on to the Echo by Edith and Bob Veale.

Author unknown. 

Good question. Well, one way to quickly determine your answer is to ask whether you have least 5% down payment and closing costs for a house?

If not, renting is a good option. It may beat living with mom and dad for the rest of your life! Even if you love them very much.

Most financial institutions and private lenders will not lend 100% of the purchase price. You need to show a financial interest in the home, so that the lender feels confident that you are not just going to walk away if money gets a little tight. If you are not able to buy this way, there is the rent-to-own option. However there is still a down payment required and interest rates will be higher.

Some of the types of renters are:

1. Folks without the 5%

2. Retired folks that are not interested in owning any longer

3. Folks experiencing financial difficulty (This can happen to ANYONE)

4. Seasonal renters, for ski seasons or summer holidays

5. Young couples or families, not sure about where life is taking them

6. Those who relocate, (i.e. the military, new jobs, etc.)

7. People who just don't want the responsibilities of owning

8. Students

These are just a few benefits of renting :

1. You do not have the liability of ownership

2. You do not have to maintain the buildings or grounds

3. You do not have the fix anything that wears out or breaks. (Unless, of course, you broke it!)

4. You do not have to cut the grass unless it is in your rental agreement

5. You do not have to do the snow removal unless it is in your rental agreement

6. If something happens to the building you do not have to deal with it

7. If the building needs upgrading, it is not your expense

8. You are not responsible for paying the taxes

9. You are not responsible for paying the building insurance

10. You do not have to come up with 5% down to live there

11. You may only need the home for a short term and don't want to have the hassle of selling

12. You may be retiring and only need it for a few years, before going into a retirement community

13. You may not be able to find just the right house, instead of buying the wrong house, rent short-term

These are just a few reasons why renting may be the best option for you. Homes come up for rent on the market all the time as do folks looking for rentals. I get calls for both periodically. There are many ways to get the word out you are looking to rent a home.

I can help you start looking for your next rental home. Whether you are looking in the Clearview, Creemore, Stayner, Wasaga Beach, Collingwood, or Mulmur township, I can help you get the ball rolling. It can take some time to find the one. Start as early as you can, so you don't miss out on a good deal.

I do property management too. If you need help deciding whether to buy or rent, or if you need help finding rentals or renters, give me a call today.