The new real estate boom is…Rentals. Surprised? Home prices and sales may be flat, but the rental industry is booming. The percentage of renters is on the rise, the number of households is increasing and more Americans are downsizing, all of which point in a single direction: rents are on the rise. At the peak of the housing boom, homeownership in America reached an all-time high at 69.2 percent. In 2009, nearly 25 percent of single-family detached rentals had been owner-occupied two years earlier. Today that number has plummeted to fewer than 67 percent, which may not sound like a huge drop, but that represents roughly 3 million households that were owner-occupied and are now tenant-occupied.
More home owners who are unable to sell their home or afford to drop the price any more are opting to rent out their homes until the market improves. But some “accidental landlords” are now having regrets. While home owners are turning their homes into rentals to generate cash flow, many say it’s not enough. They say the cash flow being generated from the property is hardly enough to cover expenses, and in some cases, they’re even losing money. Accidental landlords also say the role is time-consuming and can be stressful, as they have to worry about everything from finding tenants to handling any repairs, collecting rent and sometimes eviction. Instead of cutting their losses, as a traditional investor might, many of today’s ‘Accidental Landlords’ say they won’t walk away from their former homes because of their emotional attachment.
Need to know the best options for selling your home? Call Tammy Mitchell Hines & Co and let the professional staff guide you towards making a knowledgeable and informed decision. 618-281-HOME (4663) or 618-939-HOME (4663)